ZESA Lost Money to RBZ – Comptroller and Auditor General

The top government auditor also revealed that ZESA risks losing nearly US$5million held by banks in South Africa and China.

“I noted that there were tobacco sales to Zimbabwe Leaf Tobacco amounting to US$1 299 412, 40 that have not been recovered for a period of over two years. ZLT instructed RBZ to make a transfer of the funds to ZESA enterprises. However, the RBZ took the funds citing that ZESA holdings has a debt owing to RBZ which RBZ decided to set off. ZESA enterprises was still reflecting this trade debtor in their accounts as owing,” said Chiri.

“Recommendation- the debt should be transferred to ZESA holdings upon reaching mutual consensus or provide for the debt in full. Concerted effort should be made to resolve this issue.”

The report added that ZESA was losing revenue due to non billing of customers as most farmers were not being due to their hostility to meter readers. It added that ZESA officials sent to disconnect defaulters were sometimes bribed.

It said US$4; 2 million was held with South Africa’s FNB bank and US$33 000 by Escrow bank of China and no follow ups have been made on the money for years.

“No reconciliations were prepared for the accounts as no statements were received. In the prior year no reconciliations were prepared due to the same reason. Thus there has been no correspondence with the banks for the past three years,” Chiri said in her report.