Transparency International Zimbabwe has expressed concern over delays by the Auditor General Mildred Chiri to publish public sector audit reports before the 2021 national budget presentation saying it is against auditing standards and the principles of public finance management.
TIZ in a statement said the AG reports are integral to prudent management of the public, providing key guidelines to ensure that ‘public funds are expended in line with constitutional and other legal provision.’
AG Mildred Chiri’s 2019 report which was expected to be produced by the 30th of June 2020 is still work in progress. TIZ said the public sector audits are key to assure public sector accountability.
“The office of the Auditor General (the country’s supreme audit institution) is an important stakeholder in the accountability and anti-corruption chain. Public sector audits ensure that public resources and finances are utilized in line with constitutional and other legal provisions.
“Transparency International Zimbabwe is concerned that the Minister of Finance will present the 2021 National Budget before the 2019 Auditor General’s report is submitted to parliament. This is against auditing standards and the principles of public finance management,” read part of the statement.
TIZ said since all public entities including commissions and institutions and agencies of government at every level are accountable to parliament for the use of public resources, their operations must be scrutinized.
In this process citizens by ‘virtue of paying taxes are equally empowered to hold duty bearers accountable for the prudent use of public resources,’ said TIZ.
TIZ called for powers of the Auditor General should be extended to provide enforcement mechanisms, as there are recurring issues which are not addressed year in year out by government.
South Africa was cited as an example where the AG office has powers to refer material irregularities to relevant public bodies for further investigations, issue a certificate of debt for failure to implement recommendations for financial loss and institute binding re-medial action.
TIZ said there should be active disclosure of the reasons for the delays in the publishing of results, up scaling of funding to the AG as well as Parliamentary coordination of enforcement of recommendations.
“The Ministry of Finance and Economic Development should disclose to the public the reasons for the delay in publishing the audit results for the 2019 financial year in order to retain public trust.
“The Parliament of Zimbabwe must champion the coordination and enforcement of the Auditor General’s recommendations by the various oversight and anti-corruption institutions. This will ensure that the findings of the Auditor General remain relevant in promoting transparency and accountability in public finance management.
“The Ministry of Finance and Parliament of Zimbabwe must ensure adequate funding of the Auditor General’s office to increase its efficiency. This will go a long way in speeding up the audit process and guarantee the quality of the audit results,” said TIZ.
In Zimbabwe public audits are done in accordance with the Westminster system which provides for auditing of accounts of government entities by the Auditor General and the submission of the report to parliament.
The AG is mandated to ascertain if government’s financial statements fairly reflect its revenues and expenditure, as well as scrutinizing if an implementing agency had appropriate authority for transactions undertaken.
Once produced the AG report is shared with Parliament which refer report to the different parliamentary portfolio committees (usually the parliamentary portfolio committee on Accounts), and after further examination and debate, heads of departments are summoned to provide answers to issues raised.
PPCs then produce and present a report with recommendations and comments in plenary for debate and approval of recommendations from respective committees before conveying recommendations for auctioning by the Executive through different arms of the State.
TIZ said whilst Chiri has been commended for being objective and independent in conducting her duties, of concern are the recurring issues raised in audit reports year in and year out.
“This highlights that government departments seldom implement the recommendations highlighted in the Auditor General’s report. For example, out of 435 recommendations made in the 2017 Auditor General’s report, only 108 had been implemented at the time the 2018 audit was carried out.
“Recurring issues included unauthorized expenditures, excessive expenditures, poor maintenance of accounting records, outstanding payments to suppliers of goods and services, poor assets management and violation of procurement rules and procedures.
“In 2018 alone unauthorized excess expenditure was 70% of the total budget,” said TIZ.
