The Permanent Secretary indicated that motorists travelling across the Limpopo bridge have the liberty to pay either in United State dollars or in Rands and yet they maintain a United States Dollar bank account. The bank was supposed to convert the Rands to United States Dollars which did not take place. He advised the Committee that there is now compliance in that regard.
In response to the absence of copies of receipts and monthly summary of revenue collected, the Permanent Secretary indicated that the computer system they inherited from the private player who was previously engaged on a BOT arrangement did not produce additional copies of the receipts. However, the Ministry had since instructed ZINARA to change the system to ensure that it generates additional copies of receipts in order to comply with audit requirements. The Audit also noted that monthly reconciliations between duplicate copies of receipts, bank deposit slips and bank statements were not being carried out to which the Permanent Secretary indicated that they were now being carried out.
4.4.1.1 Going forward, the Committee recommends that the Fund should keep copies of receipts and monthly summary of revenue collected and carry out monthly reconciliations to enable them to detect errors and omissions at the material time.
4.4.1.2 The Ministry should submit monthly bank reconciliations by 31st August 2017 as evidence that monthly reconciliations were now being carried out.
4.4.2 Absence of a Contract appointing ZINARA as a collection agent
The Audit observed that there was no contract entered into, between ZINARA and the New Limpopo Bridge Fund stating the terms and conditions under which ZINARA was appointed as a collection agent, save for a Minute written by the Accounting Officer advising ZINARA to retain 20% of the toll fees collected. It also observed that the Statutory Instrument 147 of 2013 which authorised ZINARA to collect toll fees on behalf of the Fund was silent on the retention of 20% of toll fees by ZINARA.
The Permanent Secretary informed the Committee that the decision for ZINARA to become the collection agent was hurriedly taken and was unanticipated. He indicated that a contract was now in place. Regarding the 20% retention fee, he indicated that it was in fact 15% and the two governments had agreed on the percentage.
4.4.3 Absence of supporting documents for payments amounting to $1 000 000.00 for road works and salaries for contract workers amounting to $32 948
Treasury Instruction 1216 requires that a payment voucher should be supported by adequate documentation. The Audit observed that no expenditure returns were submitted to support payments amounting to $1 000 000.00 allegedly spent on road works and salaries for contract workers amounting to $32 948 were also not supported by pay sheets.
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