Posted on August 19, 2010 | Category: Politics; Business, Sport
Harare — The Sports Commission received about US$400 000 for the Games after the late Vice-President Joseph Msika played a huge role in mobilising the funds.
But from the money released, only US$300 000 could be accounted for while the other amount is not properly documented, according to an audit by chartered accountants BDO Zimbabwe. The damning draft report was prepared and released last month and audits the operations of the country’s supreme sport body for the year ending December 31, 2009.
A source who attended the Games highlighted that the money could have been for the football team that pulled out of the Games as the dates clashed with the Cosafa Youth Championship. The report is not exhaustive but dealt with matters that came to the attention of the auditors during their period of compilation. Among other issues, the report points to poor management of leave days for Sports Commission employees and a poor control of the payroll.
There is a possibility that the Commission could have been prejudiced of several thousands of dollars through some ghost workers. It is suspected that some of the employees, in the accounts department, many of who have since left, could have orchestrated the scam.
The document calls on the Sports Commission management and board to take action over the issues cited. “Cash in respect of Zone VI Games, which was the balance after the 2008 event amounting to US$95 906, could not be physically verified and could not be traced to the cashbook,” reads the report.
“No supporting documentation was available on the disbursements of the cash and no explanation was offered. “No cash count was done for the year ending December 2009.” Basing on their probe, the auditors said there was a risk of fraudulent activity.
“Misappropriation of the Zone VI Games funds could have occurred, errors in cash book difficult to identify,” read the report. The auditors called on the Sports Commission to take the matters seriously and recommended an enquiry into the Zone VI Games funds. “Cash is a very sensitive resource and therefore differences may have a lot of implications.
“Cash counts should be done at least monthly and should be reconciled with cashbook and ledger to detect any differences. The counts should be reviewed by the finance manager,” the report said. The Sports Commission also come under the microscope for failing to properly reconcile bank statements on time.
It was also recommended that the Sports Commission update their reconciliations from excel to the pastel system. It has also surfaced that there are two missing receipt books for the period under review and this led to incomplete records. “Furthermore the whole finance staff resigned from employment during the same period. This may evidence fraudulent activities during the period.”
The Sports Commission also experienced a high staff turnover during the period and most of the experienced staff left. However, the issue of high staff turnover was not peculiar to the Sports Commission but to all sectors in Zimbabwe during the period of hyper-inflation in 2007 and 2008.
A lot of skilled workers like teachers, doctors, engineers, and technicians left Zimbabwe for greener pastures mainly in South Africa and the Sports Commission was not spared. “All accounting staff who are employed by the Commission only joined during the period under review.
“The previous accounting staff left the organisation without proper notices during the year, and this might signify fraudulent activities having been perpetrated.” Still on financial matters, the auditors noted that there was no end-of-year cash count from the Khumalo Hockey Stadium although it’s known than it generated revenue.
The stadium was at times used for musical shows and the facility is in arrears with ZESA, TelOne and Bulawayo Municipality. Telephone lines have since been disconnected and they risk losing power supply soon. It was also noted that the Chtungwiza Aquatic Complex had also failed to pay its bills to the municipality, Zinwa and TelOne who have sent a final warning.
The Sports Commission also came under fire for using money on outdated equipment that has become a liability than assets. “A motor vehicle (Toyota Corrola Reg 513-164L) which was valued at US$600 at year end, incurred US$1 698 in repairs alone during 2009.
“Another vehicle (Nissan Sunny Reg-605-659Z) which has no engine and tyres has not been on the road since 2004. “There is high probability of the entity suffering a financial loss, for instance there is no economic sense on incurring US$1 698 on a vehicle with a realisable value of US$600.”
The report also noted that cars were the only assets covered by the current insurance policy and the other assets like computers, office furniture and sports equipment were not. The computed balance from the human resources department were different from the leave days being shown on payslips and this might have resulted in some employees taking leave not due to them.
Another anomaly was noted in that the payroll which was not reviewed and authorised. “Fraud can easily be perpetrated for instance ghost employees and unauthorized wages may be paid. “The Commission also came under fire for concentrating on collecting levies from football only while nothing was collected from the other 48 registered sports.
The PSL and Zifa have been the biggest cash cows for the SRC who collect six percent of the revenue at soccer matches. The clubs have for a long time been clamouring for a reduction of the levies so that they have more funds in their coffers.
» Filed Under Politics; Business, Sport