Tawanda Mangoma in Chiredzi
The new executive at the Commercial Sugarcane Farmers Association of Zimbabwe has recommended the suspension of their accountant to pave way for internal and external auditors to look into the organisation’s books.

Addressing the organisation’s full council last week, head of the internal audit team Mr Daniel Tsingo said they picked up some irregularities which might translate to gross abuse of funds by the executive voted out early this month.

Mr Tsingo, whose team only audited transactions undertaken in September and October this year, said there were pointers showing that the association might have been prejudiced of thousands of United States dollars.

“As the audit team, we have discovered multiple violations of the association’s financial management layout,” he said. ‘People were being issued with inconsistent allowances while some would get allowances without signing for them.

“The treasurer was being paid $50 for every time her signature was requested when payments were made. This would mean if she signs for a $2 payment she would get $50, of which there is no provision to that in our constitution.”

Mr Tsingo said the association discovered a fuel account had been opened at Lyonais Service Station, but there were no record of vehicles getting the commodity.

“We noted that this loophole might have been abused, hence the association being left in serious debts,” he said.

Sources within the association said over $160 000 might have been misappropriated through fuel deals, allowances and unaccounted donations.

“People were making donations as aspiring parliamentary candidates for 2018, so they were making unnecessary donations which they did not record,” said Mr Tsingo. “They were using fuel, having allowances for visiting the office and demanding allowances for signing paper work. More than $160 000 is missing and that is why people wanted to continue being in office.”

Mr Tsingo said former secretary general Mr Roy Bhila opted to replace the association’s trucks on sugar transporting contract although a contract was not signed.

He said the association could also be in trouble for tax evasion as companies which transported sugar on their account paid nothing.

“The sub-contracted companies were not paying anything to the association,” said Mr Tsingo. “They were just ferrying sugar and get their wholesome payment transferred into their accounts.

“Moreover, there is no written contract for subcontracting, hence technically there was no contract signed with the companies. We noted that this might have created problems for the associations with Zimra as VAT was not paid.”

Mr Tsingo added: “There was not taxing of taxable income and this will leave us in problems with NSSA and Zimra. We also picked that the association’s assets were not registered.”

Addressing the same meeting, Colonel Phillip Toperesu, who is a committee member, said the allegations that funds were abused should not be taken lightly.

“These are public funds which are reportedly being abused,” he said.

“Like what President Mnangagwa is always saying, we must address corruption by calling the external auditors to do our books.”

He urged the association to engage reputable audit companies to follow up on the allegations.

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