HomeBusiness DigestRBZ audits ministries, parastatals

RBZ audits ministries, parastatals

Paul Nyakazeya

THE Reserve Bank of Zimbabwe (RBZ) will with effect from next month carry out audits on all ministries, parastatals and local authorities that have receiv

ed money under the central bank’s quasi-fiscal operations.

The RBZ will carry out the audits with the help of two local auditing firms. Businessdigest understands that KPMG and Ernest and Young have been contracted to carry out the audits.

The first phase of the process will cover parastatals that have received trillions of dollars over the past three years. Most of the companies have failed to account for the funds they received from the central bank.

Companies that fail to account for the previous allocation will not get more funds from the RBZ.

“The auditing process will start next month. Most parastatals have been informed about the process and already some of them are running scared,” said an RBZ official who will be involved in the auditing process.

Analysts say it is highly unlikely that the parastatals will cooperate with the RBZ auditors especially judging by previous responses to parliament and government auditors. The central bank has been criticised for fuelling inflation by printing money in order to fund quasi-fiscal operations.

Presenting his monetary policy last week, Gono defended the quasi-fiscal activities saying without balance of payment support, it was impossible to implement liberal policies.

“How do we implement liberal policies when at every turn there are local and international economic agents whose sole role has now been prescribed as that of undermining anything and every attempt we make towards stabilising our economy as part of the political games?”, said Gono.

The list of beneficiaries included communal farmers, women and youth programmes ($1 trillion), local government authorities and the troubled Zimbabwe National Water Authority ($14,25 trillion). Zinwa and local authorities will also benefit from a US$5,25 million revolving fund. The Agricultural Sector Productivity Enhancement Facility (Aspef) has so far benefited from $3,9 trillion.

Tobacco, cotton, maize and soya bean farmers also got a fair share of Gono’s generosity. Maize farmers will get US$200 per tonne, half of which will be paid in foreign currency.

“In the event import parity prices warrant higher payments, any further top-up, over and above the US$200 per tonne will be payable in local currency,” said Gono.

Maize farmers who have already delivered to the Grain Marketing Board will get bonuses of $5,8 million per tonne. Wheat, barley and soya bean farmers will get US$250 per tonne.

Gono said 3 000 boreholes will be drilled in the next three years with assistance of a $200 billion fund.

Gono said the money will come from the Reserve Bank and anyone who shows that they were interested in “solving” the country’s fuel crisis by planting jatropha trees will benefit from a $200 billion fund.

In industry, manufacturing and retailing companies will access Bacossi fund from the Reserve Bank at concessionary rates of 25%. This fund will also benefit small shop owners in the rural areas.

This, Gono said, would improve production. There will also be a US$5 million for the packaging industry.

Mining companies will also access the funds at the same rate in addition to the increased gold support prices. Backdated to August 1, the gold support price was increased from $3 million per gramme to $3,5 million per gramme.

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