The Zimbabwe National Roads Authority (Zinara) has received parliamentary approval after effectively addressing concerns raised in Auditor-General Rheah Kujinga’s latest report on its financial management practices. The auditor general’s report flagged significant problems, including non-compliance with International Accounting Standard 21 (IAS 21) and substantial financial losses that made Zinara technically insolvent.

The Public Accounts Committee (PAC) has recognized Zinara’s plans to convert existing tolls into more efficient markets, which should improve revenue collection and provide greater convenience for motorists. The committee urged Zinara to progressively implement this plan, aiming to complete the conversion of at least two toll stations by December 2025.

In its report, PAC stated: “The non-compliance with IAS 21 was caused by Zinara’s need to adhere to Statutory Instrument 133/2019, which imposed a fixed exchange rate of 1:1, in contrast to the prescribed market-set rates. by IAS 21.” This discrepancy contributed to Zinara’s financial difficulties, resulting in its inability to meet its financial obligations.

In addition, the commission noted that Zinara and its subsidiary, Infralink, failed to seek national project status, which would have entitled them to tax exemptions. Consequently, they incurred a tax liability of ZWL$456 million to the Zimbabwe Revenue Authority (ZIMRA). PAC has asked both Zinara and Infralink to pursue this status and apply for tax exemption by December 31, 2024.

The report further emphasized the need for Zinara’s board to ensure compliance with sound corporate governance principles in its management practices. “Zinara’s plan to convert toll gates into plazas is a noble initiative that not only improves the aesthetic appeal of tolls but also facilitates increased revenue collection while improving convenience for the motoring public,” the PAC said.

The PAC report reflects the committee’s thorough review of the Auditor General’s findings and the evidence provided by Zinara officials. It concluded by urging that the recommendations be implemented within the specified timeframes, stating that adherence to these measures is essential for civil servants to fulfill their responsibility to citizens in managing public resources.

Acting on these recommendations, Zinara aims to restore its financial health and improve its service delivery to the public, thereby contributing to the well-being of Zimbabweans.