Govt To Embark On All Parastatals Forensic Audit

The Zimbabwe government is set to embark on a broader forensic audit of all parastatals as part of the state owned enterprises reform and efforts to ensure the parastatals contribution to the gross domestic product (GDP) gets back to the region of 40 percent.

According to treasury, 2016 is set to be dominated by parastatals reform as government seeks to increase the state owned enterprises’ contribution to fiscus and get rid of irrelevant entities.

“The forensic audit will ensure that we make informed decisions on whether a state owned enterprise is playing a role. What can we do to revamp the institutions? If we feel the entity has no role to play we will have to collapse the parastatal,” Finance Minister Patrick Chinamasa said.

Despite being strategic to the economy, most of the state owned enterprises have failed to deliver on their mandate and have become a burden to treasury.

Recent audits by the Auditor-General, Mildred Chiri, have revealed gross abuse of funds, mal-administration, absence of sound corporate governance structures and unsustainable debts