IPSAS to improve public sector accountability

Zim Now Writer

The International Public Sector Accounting Standards will promote transparency and accountability in the public sector by providing a clear and consistent framework for financial reporting

“IPSAS enhances the comparability of financial information across public sector entities both within Zimbabwe and internationally,” said National Housing and Social Amenities Permanent Secretary, Engineer Joy Makumbe, during an IPSAS and Tax workshop that was organised by the Urban Development Corporation recently.

IPSAS are high-quality accounting standards, which are intended to facilitate credible, high-quality financial reporting that is transparent and allows users the ability to hold governments and other public-sector entities to account.

The government of Zimbabwe set in motion a few years back a project to adopt the IPSAS through the IPSAS Implementation Plan, which is expected to be completed in 2026.

“By demonstrating our commitment to internationally recognised accounting standards, we send a strong message to investors that Zimbabwe is a trustworthy and responsible partner,” Engineer Makumbe said.

Engineer Makumbe said embracing IPSAS will align Zimbabwe with global best practices in public sector accounting and enhance the credibility of financial reporting.

UDCORP CEO Mr Joey Shumbamhini said IPSAS will improve accountability in local authorities.

“Local authorities must be up-to-date with financial reporting, and IPSAS actually brings standards reporting that makes Zimbabwe comparable to other nations in terms of how we report,” he said.

Looting through exploitation of loopholes in accounting systems has been the rampant in the public sector.

The Finance ministry has moved to arrest the trend by blacklisting some firms, temporarily freezing accounts and reversing some transactions.