THE Tourism and Hospitality Industry ministry faces litigation and reputational risk over outstanding payments of $690 000, with some expenses incurred as far back as 2013, the latest audit report has shown.
BY TARISAI MANDIZHA
According to the 2016 report by Auditor General Mildred Chiri, a Treasury Instruction 1204 provided that all claims against the government should be dealt with promptly in terms of any contract and that vouchers must be completed and paid for without delay.
“The ministry had outstanding payments amounting to $688 246 as at December 31, 2016 dating as far back as the year 2013,” Chiri’s report reads.
“This was owing to liquidity constraints that have been experienced over the years.
“The ministry faces reputational and litigation risk. There is also a risk that the ministry may incur expenditure when there are no funds.”
The Tourism ministry is yet to pay $188 305 it incurred when Zimbabwe co-hosted the United Nations World Tourism Organisation (UNWTO) General Assembly with Zambia in 2013 and is yet to pay $104 196 to the Regional Tourism Organisation of Southern Africa in subscription fees among a host of other liabilities.
Chiri recommended that the Tourism ministry liaises with Treasury to get more funding in order to clear the outstanding payments.
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She also said there was need for close monitoring of procurement to avoid getting or requesting for services when there are no funds.
The report added, management said the ministry had always engaged Treasury, with the view to financing the outstanding invoices.
Treasury had provided money to clear UNWTO-related debts in December 2015 and 2016, but due to their liquidity crunch, the Finance ministry later directed that the payments be reversed.
In terms of idle assets, the report said public viewing areas (PVAs) screens were lying idle at the ministry.
The PVAs were meant to provide viewing to the public for the 2010 Football World Cup in 2010 and were acquired for $2 million, but strangely they have never been used.
The report also pointed out that equipment used during the UNWTO General Assembly four years ago was also lying idle at the ministry.
This included interpretation equipment and other accessory gadgets and television sets.
The report suggests that the ministry should consider donating or consult Treasury on disposing excess equipment to salvage the value.
