Business Reporter
FAST transforming State Owned Enterprise, Zimbabwe National Roads Administration (ZINARA) has been honored by Parly for complying with the Auditor General’s recommendations.
The AG’s report raised concerns over the institution’s financial financial management and non-compliance with International Accounting Standard 21 and significant losses which had rendered the entity technically insolvent and unable to meet its financial obligations.
But a latest Public Accounts Committee report on ZINARA hailed the entity for a number of achievements such as plans to convert tollgates to plazas and improved revenue flows .
“The non-compliance with International Accounting Standard (IAS) 21 was brought about by the fact that Zinara had to comply with SI [Statutory Instrument] 133/2019, which stipulated the exchange rate of 1:1, while the IAS 21 prescribed a market determined exchange rate,” PAC said .
“In view of the losses reported over the years, Zinara was technically insolvent such that it was no longer able to meet its financial obligations.”
The committee observed that Zinara and its subsidiary Infralink did not seek to be accorded national project status and tax exemptions, resulting in tax obligation to Zimra of ZWL$456 million.
“The government, when coming up with legal instruments, should harmonise them with International Accounting Standards.”
“Zinara and Infralink must seek national project status approval and apply for tax exemption by December 31, 2024.”
“The Zinara board should ensure that Zinara is managed in accordance with sound corporate governance principles.”
Added PAC: “Zinara’s plan to convert tollgates to plazas is noble as plazas improve the appearance of tollgates as well as facilitating increased revenue collection with added convenience to the motoring public.
“Zinara must implement its plan of converting all tollgates to plazas progressively and should complete at least two by December 31, 2025.
“This report is a product of the committee’s thorough scrutiny of the Auditor-General’s reports and the evidence submitted by Zinara officials.
“The committee’s recommendations should be taken seriously by being implemented within the prescribed timeframes.”
PAC said “by so doing, public officials will be playing a critical role, expected of them of accounting to the public for use of public resources for the welfare of Zimbabweans”.
