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Auditor General flags loopholes within ZEC’s financial management systems

HARARE

The
Auditor-General
(AG)
has
exposed
critical
weaknesses
in
the
Zimbabwe
Electoral
Commission’s
(ZEC)
financial
management
practices,
potentially
contributing
to
the
multi-million-dollar
corruption
scandals
that
engulfed
the
electoral
body
ahead
of
the
disputed
2023
elections.

A
report
by
the
AG
highlights
lack
of
financial
expertise
within
ZEC’s
audit
and
risk
committee,
which
was
an
illegal
merger
of
the
audit
and
risk
committee
hence
failing
to
comply
with
government
regulations.

“The
Commission’s
Audit
and
Risk
Committee
had
no
members
with
accounting
and
financial
expertise,”
reads
the
report
in
part.

“In
addition,
the
audit
committee
was
combined
with
the
risk
management
committee
contrary
to
sections
92
and
94
of
the
First
Schedule
of
the
Public
Entities
Corporate
Governance
Act
[Chapter
10:31]
which
requires
every
public
entity
to
have
essential
committees
which
include
Audit
Committee,
Risk
Committee,
Dispute
Resolution
Committee
and
Remuneration
Committee.


“The
Commission
had
no
key
policy
documents
to
regulate
its
operations.
Policies
covering
risk
management,
procurement,
information
technology
and
whistle
blowing
were
not
in
place.”

The
AG’s
report
also
revealed
that
outdated
accounting
procedures,
with
manuals
not
updated
since
2012,
worsened
the
electoral
body’s
financial
credibility
and
integrity.

One
of
the
probable
reasons
why
ZEC
experienced
payment
challenges
is
the
erstwhile
Real
Time
Gross
Settlement
(RTGS),
used
as
a
surrogate
currency
by
the
country,
during
nomination
court
payments.

The
Auditor
General’s
findings
also
shed
light
on
the
environment
that
may
have
camouflaged
recent
corruption
scandals
unearthed
within
the
controversial
poll
management
authority.

In
June
this
publication
exposed
questionable
procurement
practices,
including
the
purchase
of
non-essential
items
at
inflated
prices
and
the
bypassing
of
public
tender
procedures.

ZEC
ordered
2,000
non-flushable
toilets
on
the
eve
of
the
August
2023
elections
at
a
cost
of
US$7.6
million,
astronomically
inflated
at
US$3,800
per
unit
when
they
retail
for
about
US$300
in
South
Africa,
and
were
only
delivered
in
April
this
year
eight
months
after
the
election.

The
electoral
body
also
splurged
US$5,4
million
on
gadgets
to
display
digital
V11
polling
station
forms
for
last
August’s
elections
also
bought
at
inflated
prices
which
only
delivered
months
after
the
polls.

Recommendation
by
the
AG
in
her
report
included
ZEC
strengthening
its
financial
management
practices
through
the
implementation
of
robust
policies,
qualified
personnel,
and
updated
procedures
is
essential
to
ensure
transparency,
accountability,
and
prevent
future
financial
improprieties.