Zinara under fire over huge wage bill

Zinara under fire over huge wage bill
Published: 26 March 2019 (155 Views)
THE Zimbabwe National Road Administration (Zinara) was yesterday put under scrutiny in Parliament over revelations by Auditor-General Mildred Chiri that the road agency was paying employees hefty salaries in contravention of stipulated limits.

Zinara chief executive officer Mathlene Mujokoro and other top Zinara officials appeared before the Tendai Biti-led Public Accounts Committee to answer questions on the 2016/17 forensic audit report which exposed gross financial mismanagement.

The officials were asked to explain why they had failed to comply with the 2,5% of revenue statutory limit on wages, with salaries taking up to 11% of the revenue.

The audit report also revealed that the former Zinara board led by its chairperson Albert Mugabe, claimed hefty board fees outside the stipulated limits.

In the report, it was revealed that Mugabe got $47 400 in untaxed board allowances, and another board member Davison Norupiri ($29 740).

"We want to know, as a committee, the structure of your wage bill because when you look at the forensic audit, you observe that there are amazing perks and benefits that you have been awarding yourselves as Zinara, which were not acknowledged for payment for purposes of taxation," Biti said.

The former Finance minister said the perks were listed as allowances so that they would not be subjected to taxation, and the audit resultantly revealed that Zinara had not complied with the 2,5% of the total revenue statutory limit on their wages.

Mujokoro said Zinara's failure to comply with the 2,5% statutory limit of total revenue on wages had come as a result of the growth of the entity.

She said during the time in question, in 2016, when Frank Chitukutuku was Zinara chief executive, salaries were around 10% of the statutory limit.

"However, the executive and management have been trying to contain that level. Right now, we have more than 600 employees, but in 2013 and 2010, they were around 300," Mujokoro said.

But the Public Accounts Committee demanded that the Zinara bosses give figures of how much was allocated towards salaries monthly.

Zinara finance director Simon Taranhike said the authority's wage bill for January and February 2019, for example, stood at $721 000.

MPs were not impressed by his responses and demanded that he should be more precise and give salary expenses for only one month for all employees.

Mujokoro then responded: "From January to February 2019, we paid $897 354 for the 638 employees."

Biti said the wage bill was still too high.

Asked to further explain their monthly revenues, Taranhike said they got $6,5 million monthly from vehicle licensing revenue, and of that, $1,3 million went to Univern.

On toll fees, Zinara said they make $2,5 million per month, while 18% went to Univern ($312 000) and on transit fees, the roads entity makes $1,6 million per month, while Univern gets $350 000.

The total revenue for the end of February was $35,8 million and $7,4 million was paid as agency fees to Univern.

The committee felt that Univern, which has several contracts with Zinara, and of which most of them were awarded without going to tender, had become a burden on the institution.

Taranhike said about $19 million per month was being paid to Univern by Zinara.

"We believe that the people of Zimbabwe have been prejudiced of millions of dollars by Zinara. We have summoned Univern to speak about being awarded contracts without going to tender, and we need also to summon previous chief executive officers Chitukutuku and managers Moses Juma and Zinara director of finance Precious Murove who are listed as notorious in the AG's forensic audit report," Biti said.

- newsday

Tags: Zinara, Wage, Bill,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Zimbabwe recent economic developments

by Staff reporter | 25 June 2019 | 87 Views

Mzansi crying out for Bev

by Staff reporter | 25 June 2019 | 90 Views

ZIFA dares Mliswa, Chizuzu

by Staff reporter | 25 June 2019 | 92 Views

Mnangagwa endorses the Zimdollar

by Staff reporter | 25 June 2019 | 86 Views

Obert Mpofu calls an urgent Zanu-PF Politburo meeting

by Staff reporter | 25 June 2019 | 140 Views

Khama Billiat smells blood

by Staff Reporter | 25 June 2019 | 82 Views

Zimbabwe's return to own currency is a brave move

by Dr Masimba Mavaza | 25 June 2019 | 77 Views

ZCTU promises shutdown over US Dollar banning

by Mandla Ndlovu | 25 June 2019 | 80 Views

Cyberwarfare is here

by Jacob Kudzayi Mutisi | 25 June 2019 | 71 Views

ZESA increases load shedding hours

by Mandla Ndlovu | 25 June 2019 | 80 Views

Mnangagwa succession: Race now wide open

by Staff reporter | 25 June 2019 | 97 Views

Govt orders 200 000 vehicle number plates

by Staff reporter | 25 June 2019 | 93 Views

MDC won't impose candidate for by-election

by Staff reporter | 25 June 2019 | 64 Views

'Mnangagwa political dialogue a joke'

by Staff reporter | 25 June 2019 | 82 Views

Govt splurges US$21m on legislators' vehicles

by Staff reporter | 25 June 2019 | 75 Views

Zapu asks Bulawayo to honour Dabengwa

by Staff reporter | 25 June 2019 | 69 Views

Nurses divided over negotiations

by Staff reporter | 25 June 2019 | 74 Views

'Mnangagwa presses self-destruct button'

by Staff reporter | 25 June 2019 | 69 Views

Mnangagwa bombing still under investigation

by Staff reporter | 25 June 2019 | 54 Views

Artuz leader fights for freedom

by Staff reporter | 25 June 2019 | 45 Views

Grace Mugabe hit with $4m lawsuit

by Staff reporter | 25 June 2019 | 53 Views

Error in Mawarire, ZCTU case

by Staff reporter | 25 June 2019 | 53 Views

Zanu-PF youths in 'name & shame'

by Staff reporter | 25 June 2019 | 47 Views

G40 kingpin calls for Mnangagwa-Chamisa GNU

by Staff reporter | 25 June 2019 | 50 Views

Mnangagwa's govt bans US$

by Staff reporter | 25 June 2019 | 46 Views

Zimnat and Sanlam continue to assist cyclone victims

by Agency | 25 June 2019 | 83 Views

Sick Robert Mugabe in Singapore

by Mandla Ndlovu | 25 June 2019 | 163 Views

Malema threatens to impeach Ramaphosa

by Mandla Ndlovu | 25 June 2019 | 112 Views

Obert Mpofu appears in court

by Mandla Ndlovu | 25 June 2019 | 155 Views

President Mnangagwa's full address to Zimbabweans

by Emmerson Mnangagwa | 25 June 2019 | 136 Views

Mnangagwa justifies Zim dollar return

by Staff Reporter | 25 June 2019 | 96 Views

ZHRO Vigil celebrates World Refugee week

by ZHRO | 25 June 2019 | 90 Views

ZANU PF officials clash over corruption list

by Mandla Ndlovu | 25 June 2019 | 224 Views

'ZANU PF now a threat to the country' says Biti

by Mandla Ndlovu | 25 June 2019 | 172 Views

The future of Slot Machines

by Staff Reporter | 25 June 2019 | 105 Views

SB Moyo and Chiwenga fallout?

by Mandla Ndlovu | 25 June 2019 | 246 Views