Saturday , January 22 2022

Counterattacks are sink and deeper into debt


MORE than 20 state-run enterprises sink deeply into debts with liabilities that run into hundreds of millions of dollars as they face collapse due to poor corporate governance, mismanagement and corruption, among other problems, a new report by the Auditor General (AG) Mildred Chiri Shows.

Not Tinashe Kairiza

According to the report for the financial year ending on December 31, 2017 on State Initiatives and Transfers, misleading in entities and gross corruption, among them, the Zimbabwe company, Zesa Holdings and companies of subsidiaries & It's hard to find it, such as the Zimbabwe Electricity Transfer and Distribution Company (ZETDC), Zimbabwe Power Company (ZPC), as well as the Zimbabwe National Railways (NRZ), which has contributed to the decline of the companies.
Other entities run by the state such as the Zimbabwe National Road Administration (Zinara), the Grain Markets Board (GMB) and the Zimbabwe Civil Aviation Authority (Caaz) are also in an unusual situation.

Chiri says that most of the analysts technically examined are insolvent and excited at the end of collapsing.

"My audit revealed entities that face challenges in providing a sustainable service. I reported 23 such cases and these include Zesa Holdings and its subsidiary companies, GMB, NRZ, Air Zimbabwe, Zimparks, Zipam, Zimpost, Allied Timbers and Nust, among others, "says Chiri.

He noted that the Zimbabwe company, the banner carrier, was recently rebuilt as a result of decades of ineffective control and corruption and had been pressured by debt debts of $ 341 million, based on "accountability" systems intermittent among other factors.

"Issues of accountability have continued to affect the country's airline, Air Zimbabwe. Its latest financial statements audited relate to the financial year 2010. Air Zimbabwe had 16 issues that led to a disclaimer of opinion. Issues noted, the inability of the entity was to provide supporting documents for transactions made, "said Chiri.

"In the case of concern, unconfirmed debit and credit records amounted to US $ 213 million and $ 168 million respectively. The financial statements also included a temporary account of US $ 22 million and could not; The trust provided supporting documents for spending of US $ 17 million. "
Chiri also revealed in her audit report that Zesa's power producer was struggling to serve her foreign loans that amounted to US $ 29 878 401.

Currently, Zesa, who has scanned the web from corruption scandals, has been arrested by three of Joshua Chifamba, Julian Chinembiri and Thokozani Dhliwayo operators last month for an alleged US $ 35 million alleged deal company company PME company Indian contracted to supply converters to the power producer.

"I draw your attention to the fact that the company's current liabilities are higher than what currently occurs by US $ 67 998 471. These conditions indicate that there are relevant uncertainties in exist that can cause significant doubt about the ability of the company to continue acting as an active business, "Chiri says.

Zesa's subsidiary was causing an operating loss before tax of US $ 74 472 490 for the year ending 31 December, 2017, Chiri revealed. He raised the red flag on Caaz's weak balance sheet, stating that the bankruptcy, which was hit by foreign loans of $ 165 464 664, would now act as a "going business".

"I draw your attention to the fact that the Authority did not serve its long-term long-term overseas debts amounting to US $ 165 464 664 and domestic loans of US $ 100 804 250 during the year ending 31 December, 2017.

"From that date, the current liabilities of the Authority exceeded its current assets of US $ 207 756 363," said Chiri.

The audit report also revealed that GMB, the final destination grain buyer, had lost US $ 32 391 307 in 2016, and had "accumulated losses of US $ 208 968 178 on March 31, 2017."

NRZ said that Chiri had recorded a "net net liability position of US $ 256 535 751", while the parasatal, who recently complained a $ 4.2 billion recapitalization agreement with the Diaspora Infrastructure Development group, South Africa company ( DIDG) has accumulated a loss of US $ 388 193 404 for the year ending December 2016.

On Zinara, the audit report noted that the entity's expenditure on salaries, allowances and expenditure was being beaten to 10% revenue compared to 2,5% reported for the year ending 31 December , 2016.

"During the year the Ministry was engaging with some service providers to deliver special and emergency projects on behalf of local authorities. For some of the projects that were made, there was no evidence to suggest that the projects had been subject tendering processes, "Chiri notes.

Last year, the government invited applications from private investors to buy a competition in 24 state enterprises that have been constantly draining on the bankruptcy.

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