Zimbabwe's Treasury is under renewed scrutiny after the Auditor-General uncovered major weaknesses in the management of nearly US$2 billion in public funds, revealing that more than US$445.7 million in government payments could not be verified because recipient ministries failed to acknowledge receiving the money.
The Auditor-General's latest audit of the Ministry of Finance, Economic Development and Investment Promotion found that Treasury processed US$1.986 billion in direct payments on behalf of Ministries, Departments and Agencies (MDAs).
However, only US$1.54 billion was confirmed by the beneficiary institutions, leaving US$445.7 million unsupported by acknowledgement letters or evidence that the payments had been regularised, making it impossible for auditors to verify the completeness and accuracy of the expenditure.
The report warns that without proper confirmation from spending ministries, there is a heightened risk of material misstatements in Government accounts, weakening transparency and accountability in the management of public finances.
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In its response, Treasury said it had instructed Ministries, Departments and Agencies to regularise the direct payments and submit the required acknowledgements. However, the Auditor-General maintained that at the time of concluding the audit, there was no evidence that the institutions had complied, meaning the anomaly remained unresolved.
"Despite the response by management affirming that the MDAs confirmed the direct payments, there was no evidence from the MDAs that they acknowledged the payments," the Auditor-General noted.
"In addition, the response by management showed that the respective MDAs had been advised to regularise the expenditure. There was also no evidence that the MDAs had regularized the direct payments."
The latest findings add to a series of financial management weaknesses identified within the Ministry, including delayed submission of key financial statements, unreconciled accounts and unauthorised expenditure running into billions, raising fresh concerns over the effectiveness of Treasury's internal financial controls despite its central role in safeguarding Zimbabwe's public finances.
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