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Ms Paurina Mpariwa

Oliver Kazunga, Senior Business Reporter
THE Public Accounts Committee has ordered the Ministry of Transport and Infrastructural Development to avail the outstanding $400 000 vouchers for the Harare-Mutare highway project by August 31, 2017.

Section 81 (2) (b) (iii) of the Public Finance Management Act (PFMA) requires all payments for public monies to be supported by sufficient vouchers of proof of payment.

Presenting a report on the 2014/15 appropriation and funds accounts for the Ministry of Transport and Infrastructural Development in Parliament on Tuesday, Public Accounts Committee chairperson, Mrs Paurina Mpariwa said:“The ministry, in violation of this provision, failed to avail for audit examination payment vouchers amounting to $608 478 for the Harare – Mutare road project.

“The Audit therefore could not verify the nature of expenditure incurred under the project. Furthermore, Treasury Instruction 0950 requires all expenditure on voted funds to be classified under appropriate sub-heads and items as shown in the estimates of expenditure.”

During the period under review, Mrs Mpariwa said, Treasury released $400 378 for the Harare-Mutare project but the funds were used to settle outstanding invoices for other projects, which had no allocation under the 2014 budget.

“These were Harare-Masvingo $199 785. Shamva- Bindura $58 965, Harare-Gweru $54 473, Makuti reseal unit $45 027 and Manyame Bridge $41 790,” she                  said.

Mrs Mpariwa said the above expenditures were then reported under Harare-Mutare highway project thereby overstating the expenditure on the project while understating expenditure on various other projects.

She said there was no doubt that such an environment was conducive for fraudulent activities since payments cannot be verified in the absence of supporting documentation and value of projects may be distorted through misstating of expenditures.

“Without following proper budgetary processes, State funds may be directed at unintended purposes resulting in missing national priorities.

“The Permanent Secretary (Mr Munesu Munodawafa formerly with the Ministry of Transport and Infrastructural Development) conceded to the audit observations.

“He indicated that supporting documentation for the un-vouched expenditure could not be availed during the audit period as they were in the provinces,” she said.

Mrs Mpariwa pointed out that Mr Munodawafa blamed the manual recording system obtaining in the provinces.

“The Ministry indicated that some vouchers were collected from the provinces and the amount had been reduced to $400 000.

“The Permanent Secretary made a commitment that he would avail the outstanding documentation during the entrance meetings of the 2016 audits.

“In relation to funds diverted from the Harare-Mutare road project, he pointed out that the transfer of funds to other projects was in response to litigations instigated by the contractors,” she said.

The committee’s chairperson said they noted with concern the reluctance by Mr Munodawafa to follow proper procedures by unilaterally moving funds from one project to another without securing Treasury approval.

“The Committee recommends that the Civil Service Commission, the appointing authority, should by 31 August, 2017, issue a stern warning against Mr Munodawafa for failing to seek Treasury approval for moving funds on projects approved by Parliament and disguising expenditure under different projects.

“The Ministry should avail vouchers for the outstanding amount of $400 000 by 31 August,  2017,” she said. — @okazunga