• Government paid US$8.1 million for 129 cars for the ZPCS, but the actual amount paid was not properly recorded, the auditor was unable to inspect the relevant documents
• Zimstat paid a ZWL54.5 million deposit for 16 Toyota double cab vehicles, but only 4 were delivered
• ZWL7 million worth of furniture procured was also not delivered.
• The government procured vehicles for various ministries and agencies, but many of these vehicles were either not delivered or lacked proper documentation

Harare- Since attaining independence, one of the major problems Zimbabwe has been facing is corruption. The issue dates back to the Willowgate Car scandal in 1988, which implicated top government officials. The problem persisted, culminating in the 2015 diamond saga, where an estimated $15 billion in diamond revenue went missing. Despite these high-profile cases, the Mugabe administration failed to effectively tackle corruption.

After President Emmerson Mnangagwa took power in 2017, he vowed to address corruption without "sacred cows." However, in practice, many top officials accused of graft have still managed to evade prosecution in parastatals.

An Al Jazeera documentary exposed widespread gold smuggling, but the government dismissed these allegations as "malice and libel." Yet, official statistics show Zimbabwe is losing at least $1.2 billion in mineral revenues and $200 million in gold revenues annually, suggesting the "Gold Mafia" may have some validity. 

Corruption appears to be rampant in state-owned enterprises. The collapse of the ZISCO steel company in 2008 is widely attributed to graft. Other parastatals like ZESA, ZINWA, NRZ, and Air Zimbabwe have also been plagued by mismanagement and corruption scandals.

The 2023 Auditor General's report highlighted further instances of high-level graft, such as the government's questionable procurement of cars, laptops, furniture worth over $940,000 which were never actually delivered.

Despite repeated promises, the government has struggled to meaningfully curb the pervasive corruption that continues to undermine Zimbabwe's economic development and public trust in institutions. Tackling this deep-rooted issue remains a major challenge for the country's leadership.

2023 Auditor General’s Snaps

Cars Scandal

ZPCS Car Scandal

The 2023 Auditor General’s report revealed that the government paid US$8.1 million for 129 cars for the Zimbabwe Prisons and Correctional Services (ZPCS), but the actual amount paid was not properly recorded in the Appropriation Account. The auditor was also unable to inspect the relevant documents related to the actual amount paid as they were not released for inspection.

Zimstat Car Scandal

The Agency paid ZWL$54.5 million deposit towards procurement of sixteen (16) Toyota Double cab vehicles amounting to ZWL$ 121.11 million. However, the supplier delivered four (4) motor vehicles as at December 31, 2022. In addition, furniture procured that meant to be distributed to various provinces during the year amounting to ZWL$ 7 million was not delivered.

In reponse, the Agency said a follow up was. It said if the supplier fails to supply the furniture in question, processes recover will be initiated to recover the funds paid by the Agency.

The Agency’s board also resolved to dispose nine (9) motor vehicles through a public auction on January 6, 2022 and eight (8) motor vehicles were disposed. However, one (1) motor vehicle earmarked for disposal could not be accounted for. Inspection of the records indicated that the vehicle had gone for repairs to a garage which have since closed. In response, the agency said the vehicle was stolen whilst at a garage. The garage closed trading and the owners could not be located.

Tsapo Cars

The report also shows that the government had procured seven Toyota Hilux GD6 vehicles, from Tsapo, a prominent car dealership. However, the audit findings conducted by the Office of the Auditor General indicated that these vehicles had not been delivered as of the completion of the audit in September 2023. The supplier had cited supply chain challenges on their production line. However, the OAG report indicates that as of May of the current year, the vehicles were still yet to be delivered.

High Court Cars

The Master of the High Court purchased 4 Toyota Hilux cars from Croco Motors in 2022 for US$252,657, with an agreed delivery period of 40 days. However, by June 2023, only 1 of the vehicles had been delivered

Home Affairs Cars

In 2022, the Ministry of Home Affairs placed an order with Faramatsi Motors for 35 vehicles at a cost of ZWL182.62 million The government agreed to pay half of the amount upfront, within four weeks, before the delivery of the vehicles. The Ministry duly paid ZWL175 million which was the equivalent of US$888,874 at the time, sufficient for only 17 cars. Faramatsi Motors subsequently delivered 11 cars, leaving 24 vehicles outstanding as of May this year. The Ministry attributed the shortfall to the depreciation of the local currency, noting that the initial order cost was equivalent to US$1.8 million.

Ministry of Mines Cars

The report also highlighted a similar situation regarding the procurement of cruisers for the Ministry of Mines, ordered in September of the previous year at a cost of $193,000 from Burnett Motors. While the Toyota Land Cruiser Prado VXL was eventually delivered in April of the current year, it was done so without the necessary documentation required for the change of ownership. Furthermore, the Toyota Land Cruiser 79 was still outstanding as of the May reporting period.

Attorney General Cars

In 2023, the government procured vehicles for the Attorney General's office, acquiring 7 cars from Byword Trading for US$374,430 and 11 cars from Paza Buster for US$533,500. The agreed delivery timeline was 6-8 weeks. However, by the time of the audit this year, the 3 Toyota Corollas and 4 Toyota Hilux 2.8 GD6 from Byword Trading had not been delivered, nor had the 4 Isuzu D-Max vehicles from Paza Buster.

Sports Cars

The Ministry of Sports placed an order in December 2022 for 17 Nissan Navara vehicles from AMTEC, at a cost of ZWL393.17 million. By May of the current year, only 7 of the vehicles had been delivered, and the remaining 10 were still outstanding. Furthermore, 4 of the 7 delivered vehicles had yet to be registered in the name of the Ministry.

These procurement challenges across various government entities highlight the need for improved supply chain management and enhanced accountability in the acquisition of critical assets.

The report provided further details on the procurement challenges faced by the government in acquiring laptops, printers, and office furniture:

Laptops and Printers:

The Ministry of Home Affairs paid a total of US$422,487 for 26 printers, 67 laptops, 55 desktop computers, and 22 additional printers. However, by May, 22 of the printers had not yet been delivered.

In the same year, the Ministry paid US$474,750 to Vital Computers for 150 i7 laptops, with a promised delivery timeline of two weeks. By May of the current year, only 26 of the laptops had been delivered. The Auditor General's Office noted that the government ended up paying US$3,165 per laptop, which was significantly higher than the quoted prices of US$807 to US$960 from other vendors.

Furniture

In 2023, the Department of Immigration paid US$439,585 to Aganang Furniture for office furniture, with a contractual requirement to deliver within two weeks. However, by the time of the audit in May, no furniture had been delivered.

These procurement issues highlight the need for improved financial management, better contract negotiations, and stricter monitoring and accountability mechanisms within the government's acquisition processes.

Implications

The 2023 Auditor General's report on the government's car and procurement issues has significant implications for the country's economy.

The waste of public funds is a major concern. The report highlights the government's overpayment for vehicles, with $8.1 million spent on 129 cars for the Zimbabwe Prisons and Correctional Services without proper accounting. Additionally, the government paid for vehicles, laptops, printers, and furniture that were not delivered, representing a substantial misuse of public resources. This misallocation of funds hinders the government's ability to allocate resources effectively for critical public services and development initiatives.

The lack of transparency and accountability in the procurement process is also troubling. The Auditor General faced challenges in accessing relevant procurement documents, indicative of a lack of transparency. The discrepancies between quoted and actual prices paid, as well as the failure to deliver contracted goods on time, point to potential corruption and collusion between government officials and suppliers. Weak accountability mechanisms allow these irregularities to persist, eroding public trust in the government's financial management.

These procurement issues can also exacerbate Zimbabwe's debt crisis. The misuse of public funds and the inability to effectively manage government contracts can lead to increased borrowing to cover shortfalls, further burdening the country's already high debt levels. This can limit the government's capacity to service its debt obligations and undermine its creditworthiness, making it more difficult to secure future loans or renegotiate existing debt.

The disruption to government operations caused by the non-delivery of critical assets can also have a negative impact on foreign direct investment (FDI) flows. Unreliable procurement practices and inefficient public administration can discourage potential investors, who seek a stable and predictable business environment. This can hamper Zimbabwe's efforts to attract much-needed foreign investment, which is crucial for economic growth and development.

Finally, the reputational damage caused by these revelations can further hinder Zimbabwe's economic recovery. The country's international reputation, particularly in terms of its commitment to good governance, financial management, and the rule of law, can be severely undermined. This can make it more challenging for Zimbabwe to participate in global trade and economic cooperation, ultimately limiting its potential for economic growth and development.

To address these issues, the Zimbabwean government must prioritize strengthening its procurement processes, improving contract management, enhancing financial oversight, and rebuilding public trust. Addressing these challenges can help mitigate the economic and reputational risks, and lay the foundation for more efficient and effective public resource management.

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