Clean Bill of health for ZINARA

STAFF WRITER

The Zimbabwe National Road Administration (ZINARA) has achieved a significant milestone in its journey towards enhanced governance and accountability, securing a rare clean or unqualified audit opinion for the financial year 2023.

This achievement marks a turning point for the organisation, which has faced challenges  in governance and financial management in the past.

A clean audit opinion, issued by the Auditor General, underscores ZINARA’s commitment to sound financial discipline, adherence  to proper accounting practices and efficient resource management.

A clean audit, which indicates that an organization’s financial statements are free from material misstatements and comply with all regulatory standards, is a rare but critical achievement in public sector institutions.

ZINARA, has long been at the centre of scrutiny due to concerns about corruption, mismanagement, and lack of financial oversight. For years, previous audit opinions on ZINARA’s financial reports ranged from qualified opinions to adverse opinions, with auditors frequently highlighting deficiencies in financial reporting, the misallocation of funds, and ineffective use of resources. However, the tide seems to have turned in 2023, with the clean audit reinforcing the organization’s commitment to reform.

In an interview with Business Times, a market leader in business, financial and economic reportage, ZINARA board chairman, Dr George Manyaya said: “We  are happy to have a clean audit opinion. This is the first time ever since ZINARA came into inception and it makes us proud.  If you may be aware, ZINARA underwent a forensic audit  and there were recommendations  from the Public Accounts Committee  with 71 issues  that we asked to resolve.”

He added: “I am happy that we appeared before the committee and now there are no more issues. Same as the Auditor General’s report.”

Also commenting on the milestone, the Minister of Transport and Infrastructural Development, Hon. Felix Mhina, expressed his pleasure at the achievement, noting that the clean audit was a direct reflection of the government’s focus on improving governance structures within state-owned enterprises.

“The receipt of a clean audit opinion by ZINARA is a testament to the hard work and dedication of the entire board,  management team and staff at ZINARA,” said Minister Mhina. “This achievement is not only a victory for the administration but also for the people of Zimbabwe who rely on well-maintained roads for their daily activities. We have always prioritized financial discipline and the elimination of corruption within the public sector. This clean audit is an indication that we are moving in the right direction, and we will continue to hold all state institutions to the highest standards of accountability.”

Mhina also emphasized that the clean audit was part of the broader efforts by the government to restore public confidence in state-owned enterprises, urging other parastatals to emulate ZINARA’s example.

Nkosinathi Ncube, the CEO of ZINARA, attributed the clean audit opinion to a comprehensive overhaul of the organization’s internal controls, improved financial reporting systems, and the implementation of robust anti-corruption measures. He acknowledged that this achievement was the result of collaborative efforts at all levels of the organization.

“We are extremely proud of the progress ZINARA has made over the past year. This clean audit is a direct result of the diligent work of our finance department, auditors, and all other employees who have committed to upholding the highest standards of governance,” Ncube said. “We have instituted more rigorous controls, ensured that all projects are properly audited, and ensured that funds allocated for road infrastructure development are used efficiently and transparently. This achievement is just the beginning, and we are committed to continuously improving our processes and reporting mechanisms.”

To fully understand the significance of this clean audit, it’s helpful to compare it with past audit opinions. A qualified audit opinion is given when the auditor finds some issues, though not significant enough to cast doubt on the overall financial statements. In ZINARA’s case, previous years often saw qualified opinions due to concerns over discrepancies in fund allocation and management.

An adverse audit opinion, on the other hand, is issued when auditors believe that the financial statements do not fairly represent the financial position of an organization. This type of opinion signifies serious issues with accounting practices or governance, and ZINARA had faced such opinions in earlier years, particularly when questions arose about the misuse of funds for road maintenance.

Finally, a disclaimer of opinion occurs when auditors are unable to form an opinion on the financial statements due to insufficient evidence or an inability to carry out an effective audit. ZINARA faced disclaimers in the past due to lack of transparency and inadequate records.

The clean audit opinion for 2023, however, signifies a complete turnaround. The organization has demonstrated that it can effectively manage public funds, adhere to accounting standards, and implement systems that ensure accountability.

The clean audit opinion awarded to ZINARA in 2023 is a reflection of the organization’s commitment to reform and governance.

Consequently, ZINARA has set a benchmark for other public institutions in Zimbabwe. This achievement not only boosts the credibility of ZINARA but also strengthens public confidence in the government’s ability to manage state resources effectively. As ZINARA continues on its path of reform, it is poised to play a crucial role in the sustainable development of Zimbabwe’s road infrastructure.