Zim’s public sector crisis poser

PHILLIMON MHLANGA

The Institute of Chartered Accountants of Zimbabwe (ICAZ is expediting the process to build capacity of the country’s public sector as part of its efforts to improve efficiency, transparency and accountability.

Government, which has been using a cash accounting system since 1923, has roped in the Public Accountants and Auditors Board (PAAB) and ICAZ to help in the revamping of the public sector’s financial management system and professionalisation of the public sector, to enhance performance and overall service delivery . PAAB has a statutory mandate to regulate and oversee the accountancy profession in Zimbabwe, under Section 44 (2) (a) of the revised Public Accountants and Auditors Act Chapter 27:12.

The move will also ensure that government accounting personnel are qualified and experienced to deliver what is expected of them.

Zimbabwe’s central government, urban and rural authorities spend large sums of public funds on a range of services but the funds have been mismanaged. A stronger accounting system in the public sector will help government meet tax payers’ demands for transparency and accountability.

Financial experts said fixing Zimbabwe’s financially mismanaged public sector was key because a strong accountancy backbone is crucial to the health of Zimbabwe’s economy. Funds are currently not managed in the public interest.

Speaking at an ICAZ gala dinner to commemorate the end of the centennial celebrations this week, ICAZ president Tapiwa Chizana said the accounting profession was an essential driver of strong and sustainable institutions to enhance transparency and accountability in the public sector.

The chartered accountants (CAs), Chizana, said plays a key role in strengthening the economy adding that ICAZ and PAAB have taken a big step to tackle the issue, which helps to bolster international business confidence, which will encourage international investment and development of international business relations. “Our economy is in distress,” Chizana said.

“Government and the private sectors are putting efforts to secure and lure investments. CAs speak against vices such as corruption, and we play a key role in strengthening the economy. We are working with the PAAB on the currency issues and the professionalisation of the public sector. Speaking to investors, they look up to us (CAs) to play a key role in rebuilding our nation. We are (ICAZ and PAAB) expediting the process.”

ICAZ chief executive officer, Gloria Zvaravanhu, agreed with Chizana saying: “We (CAs) should work on how we would be more effective in the economy.

We are looking at how we can grow and influence the economy. We are working on the professionalisation of the public sector financial management system,” she said. Sandy Manson, the president of the Scottish Institute of Chartered Accountants and the chief executive of Johnston Carmichael, who was guest speaker at the ICAZ celebrations ceremony this week, said CAs play a significant role in influencing the destiny of Zimbabwe.

“Will ICAZ influence the destiny of Zimbabwe? He asked. It should. The (accounting) professionals have a great role to play. It’s up to us to make that difference. You should not underestimate the importance of the institute (ICAZ) to the recovery of the Zimbabwe economy,” Manson said.

The cash-basis accounting system, which government is currently using, recognizes transactions between government, local authorities and their clients only when the money is paid.

But, the public sector will migrate towards adoption of an accrual-based reporting system, to ensure great transparency and accountability in how government records, reports utilisate the wealth of financial data it receives and processes at any given time.

The shift to the accruals-based International Public Sector Accounting Standards, which will recognise those transactions within the time period that they occur, is part of a wider public finance management reform in the public sector. The new accounting system is expected to contribute to better use of public funds. It will also allow better public service performance. Enhanced transparency are part of the core focus of the accounting profession. This can support in solving endemics issues of corruption and financial mismanagement and drive economic development

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