Mthuli confident all State entities will comply with IPSAS by year-end

LIVINGSTONE MARUFU

Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has expressed confidence that all State-Owned Enterprises (SOEs) in Zimbabwe will comply with International Public Sector Accounting Standards (IPSAS) by the end of this year, in a bold move aimed at enhancing transparency, accountability, and investor trust in the public sector.

He said Zimbabwe’s public sector is firmly on track to adopt IPSAS across all government departments and parastatals before the year closes.

“I can assure you that by the end of this year, all State-Owned Enterprises will adhere to IPSAS,” Professor Ncube declared.

“The Public Accountants and Auditors Board (PAAB) has been instrumental in supporting government during this transition, and as Treasury, we are determined to report accurately on our assets, liabilities, and financial positions.”

IPSAS, a globally recognised framework, provides a comprehensive system for reporting financial activities in the public sector. It enables governments and public institutions to present their financial statements transparently and consistently in line with international best practices.

The push towards IPSAS marks a significant step forward in the government’s efforts to modernise public finance management and restore credibility to state institutions that have long battled accusations of financial mismanagement, corruption, and inefficiency.

Professor Ncube’s remarks come against the backdrop of mounting scrutiny over the state of Zimbabwe’s parastatals.

Over the years, reports from the Auditor General’s office have exposed widespread misappropriation of public funds, poor internal controls, and lack of accountability across many SOEs. These challenges have not only eroded public confidence but have also hampered efforts to attract foreign direct investment.

Experts argue that while the adoption of IPSAS is a commendable goal, its full implementation may face resistance due to entrenched malpractices and capacity gaps in financial reporting.

Nevertheless, the Finance Minister remains unwavering.

“This is not just about numbers or ticking a compliance box,” Ncube said. “It’s about fostering trust—trust among our citizens, our investors, and our international partners. It’s about demonstrating that Zimbabwe is ready to compete and cooperate on the global stage through transparent and responsible financial reporting.”

The PAAB, established under the Public Accountants and Auditors Act (Chapter 27:12) of 1995, plays a central role in this transition. As the sole regulator of the accountancy profession in Zimbabwe, the Board is responsible for standard setting, licensing, and oversight of accountants and auditors operating in the country.

“As the authoritative body overseeing the profession, the PAAB ensures that Zimbabwe’s accounting standards align with global best practices, thereby fostering trust in our financial systems,” Professor Ncube said.

“Its commitment to enforcing high-quality auditing and financial reporting standards not only safeguards the public interest but also strengthens corporate governance across the economy.”

He added that the PAAB’s voice is crucial in shaping policy dialogue at national, regional, and international levels. “Through advocacy, the PAAB helps reinforce Zimbabwe’s commitment to global financial integration and economic stability,” Ncube noted.