The Public Accounts Committee (PAC) has raised serious concerns over the Ministry of Transport and Infrastructural Development’s handling of its finances for 2022, citing delayed payments, interest penalties to contractors, weak controls, and non-compliance with statutory deadlines.
According to the PAC report tabled in Parliament, the Ministry paid US$3.5 million (ZWL2.37 billion) in interest charges to contractors in 2022 after failing to meet agreed payment timelines on Interim Payment Certificates (IPCs). Lawmakers noted that the delays, largely attributed to late Treasury disbursements, inflated contract costs and wasted public resources.
“Late payments to contractors will increase the contract price, resulting in wastage of financial resources,” the Committee observed, recommending that the Ministry negotiate with contractors to waive penalties where possible and ensure that projects only begin after Treasury confirms funding availability.
The report also revealed discrepancies in expenditure figures. The Appropriation Account disclosed ZWL165.45 billion, while the Public Financial Management System (PFMS) recorded a slightly different figure of ZWL165.45 billion, and the Sub-Paymaster General Account reflected ZWL158.48 billion. The variance was linked to unreconciled bank charges and delays in reconciling accounts. Although the figures were later aligned, the PAC criticised the Ministry for failing to conduct timely monthly reconciliations.
Another major concern was the Ministry’s failure to submit financial statements by the statutory deadline of January 30, 2023, only handing them over on March 31. The late submission, blamed on Treasury’s delays in providing documentation for direct payments, undermined compliance with the Public Finance Management Act.
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The Committee further highlighted governance gaps, including:
Payments made to contractors such as Linash Enterprises without formalised contracts, exposing government to legal and financial risk.
Advances of construction materials to contractors without recovery of costs, raising fears of financial prejudice to the state.
Outstanding US$10.7 million in unretired travel and subsistence allowances for staff who did not undertake scheduled trips.
The PAC warned that continued financial indiscipline could deepen resource leakages. “We would have expected a Ministry of that size, with experienced personnel, to ensure proper financial management,” the report stated.
The Committee has directed the Ministry and Treasury to improve record-keeping, ensure reconciliations are done promptly, and enforce accountability mechanisms on contractors and officials.
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