Finance Ministry Under Fire Over ZWL$111bn Unreconciled Public Funds

Parliament has raised alarm over serious financial irregularities in the Ministry of Finance after discovering that more than ZWL$111 billion in public funds could not be reconciled in the government’s 2022 accounts.

The findings are contained in a report by the Public Accounts Committee (PAC) which examined the Auditor-General’s review of the Ministry’s Appropriation and Fund Accounts for the year ending 31 December 2022.

According to the report, the ministry recorded a total expenditure of ZWL$282.8 billion, but failed to account for ZWL$111.3 billion, leaving a massive unexplained variance.

The PAC, established under Section 299 of Zimbabwe’s Constitution said the discrepancies point to “weak financial controls, poor oversight and a high risk of misuse of public funds”.

In its introduction, the committee said it was concerned by the scale of the anomalies and warned that the country’s public finance system was vulnerable to abuse.

“The absence of routine reconciliation checks has created an environment where errors and potential fraud can go undetected,” the report said.

Among its key recommendations, the committee ordered the ministry to introduce monthly reconciliation checks, ensure accountability of designated officers, stop prepayments for vehicles and equipment without performance guarantees and recover all outstanding funds, with interest by 31 March.

The committee also called for disciplinary action against officials found to have breached financial regulations.

In its response, the Ministry of Finance said the discrepancies arose because line ministries submitted their financial reports late or with errors making it difficult to reconcile accounts on time.

However, the PAC dismissed the explanation as inadequate stating that delays do not justify the failure to safeguard public money.

The revelations come amid mounting public frustration over economic hardship, inflation and deteriorating public services.

Analysts say the report highlights deeper governance challenges within country’s public financial system and raises questions about transparency and accountability in state institutions.

The PAC warned that unless urgent reforms are implemented, similar losses could occur in future budgets, further straining the country’s fragile economy.