THE Zimbabwe National Roads Administration (Zinara) has received a nod of approval from Parliament after addressing concerns raised in Auditor-General Rheah Kujinga’s report.
The Auditor-General’s report highlighted issues to do with Zinara’s financial management, including non-compliance with International Accounting Standard 21 and significant losses.
This non-compliance led to technical insolvency, making it difficult for Zinara to meet its financial obligations.
However, the Public Accounts Committee praised Zinara’s plans to convert tollgates to plazas, citing improved revenue collection and convenience for motorists.
The Public Accounts Committee (PAC) report urged Zinara to implement the plan progressively, aiming to complete at least two plaza conversions by December 2025.
“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 a report released last week.
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“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”.