GROUP 3: AUDITOR GENERAL PRESENTATION

Emmanuel Dumba R214970G

Nyagume Abraham R217687Y

Lizzie Mahlahla R2115962R

Farai Sibanda R219849B

Brandon Bongani Nyatondo R218392H

Tarisai Nyikadzino R2118385Z

Tapiwanashe C Chingwe R2110469X

Takunda H Marumure R2113584G

Talent M Maziyokwenyu R217033F

Tatenda M Chaitwa R216771M

Ebenezer Mutenga R219866N

Calistus Dzumbira R2116996X

AUDITOR GENERAL

The auditor general is a senior government official responsible for conducting

independent audits and examinations of government agencies, department and
programs to ensure accountability, transparency and effective use of public
funds. The auditor general’s office is a public office but does not form part the
Public Service. He is preforms his duties in terms of the audit office act chapter
22:18. He checks the spending of public money by looking whether it has been
used ideally and for the purposes intended. This is done by checking all
government spending yearly. All government entities submits their financial
statements every year to the auditor general to be audited. The auditor general is
responsible for improving government accountability by auditing and reporting
on the government’s operations. (Chikwati, 2017)

Functions of the auditor general-SECTION 309

Auditor general’s functions:

 Audits the accounts, financial systems and financial management of all

departments, institutions and agencies of government, all provincial and
metropolitan councils and all local authorities.

 At the request of the Government, to carry out special audits of the

accounts of any statutory body or government-controlled entity.

 To order the taking of measures to rectify any defects in the management

and safeguarding of public funds and public property.

 To exercise any other functions that may be conferred or imposed on him

or her by or under an Act of Parliament.

The Auditor General plays a critical role in promoting transparency and

accountability in government and in ensuring that public funds are used
efficiently and effectively. As noted by the Zimbabwe Independent, “The Auditor
General is a key player in promoting good governance and accountability in
Zimbabwe” (Zimbabwe Independent, 2018).

In Zimbabwe, the Auditor General’s office has been instrumental in uncovering

financial irregularities and promoting accountability in government. For
example, 2019, the Auditor General’s office conducted an audit of the Ministry of
Finance and Economic Development, which revealed significant financial
irregularities (Auditor General’s Report, 2019).

Section 310: Appointment of the auditor general

Section 310 of the Audit office Act Chapter 22:18 outlines the process for
appointing the Auditor General. The Auditor-General is appointed by the
President with the approval of Parliament

He or she must be a Zimbabwean citizen chosen for his or her integrity, and must
have been qualified to practice as an auditor for at least ten years.

The term of office of the Auditor-General is a period of not more than six years
and a person must not be appointed as Auditor-General after he or she has
served for one or more periods, whether continuous or not, amounting to twelve
years.

Before entering office, the Auditor-General must take, before the President or a
person authorized by the President, the oaths of loyalty and office. (The Herald,
2020).

INDEPENDENCE OF AUDITOR GENERAL-SECTION 311

Section 311 of the Audit office Act Chapter 22:18 emphasizes the importance of
the Auditor Generals independence. According to this section, the Auditor
General must be independent and impartial in the performance of their duties
(Republic of Zimbabwe, 1983).This means that the auditor general must not be
subject to the direction or control of any person or authority, including the
government and other interest groups.

The independence of the audit general is essential to ensure the integrity and
effectiveness of the audit process. As noted by the Zimbabwe independent, “The
Auditor general’s independence is essential in promoting transparency and
accountability in government” (The Herald, 2020).

In Zimbabwe, the Auditor-Generals independence is further reinforced by the

Constitution, which provides that the Auditor general must be appointed in a
manner that ensures their independence (Constitution of Zimbabwe, 2013).

In practice, the Auditor-Generals independence is demonstrated through their

ability to conduct audits without interference from the government or other
interest groups. For example, in 2019, the Auditor General’s office conducted an
audit of the Ministry of Finance and Economic Development, which revealed
significant financial irregularities (Auditor-Generals Report, 2019).The audit
report was widely publicized, and the government was forced to take the
corrective action to address the irregularities.

REMUNERATION OF THE AUDITOR GENERAL-SECTION 312

The Audit office Act outlines the remuneration of the Auditor-General. According
to this section, the salary and benefits of the Auditor-General must be
determined by the president of Zimbabwe, in consultation with the public
Service Commission (Republic of Zimbabwe,1983).The remuneration of the
Auditor-General must be sufficient to ensure their independence and
impartiality.

The remuneration of the Audit General is important to ensure that they are not
influenced by external factors, such as financial pressures or personal interests.
As noted by the Zimbabwe independent, “The Auditor Generals remuneration
must be sufficient to ensure their independence and impartiality, and to prevent
them from being influenced by external factors” (Zimbabwe independent, 2018).

In practice, the remuneration of the Auditor-General in Zimbabwe is determined

by the Public Service Commission, which is responsible for determining the
salaries and benefits of all public servants(Public Service Commission,2020).The
commission takes into account factors such as the Auditor-Generals
qualifications, experience, and responsibilities, as well as the prevailing
economic conditions in Zimbabwe.

REMOVAL OF AUDITOR-GENERAL FROM OFFICE-SECTION 313

Audit Office Act outlines the process of removing the Auditor-General from office.
According to this section, the auditor can only be removed from office by the
President of Zimbabwe, on the recommendation of a tribunal appointed by the
President (Republic of Zimbabwe, 1983).The tribunal must investigate any
allegation of misconduct, incompetence, or inability to perform the duties of the
office.

In Zimbabwe, the constitution also provides that the Auditor General can only be
removed from office in accordance with the constitution (Constitution of
Zimbabwe, 2013).This means that the removal of the Auditor General must be
done in a manner that is consistent with the principles of natural justice and
fairness.
The tribunal appointed to investigate the Auditor General must be impartial and
independent, and must consist of persons with the necessary expertise. The
tribunal must also follow a fair and transparent process, and must give the
Auditor General a reasonable opportunity to respond to any allegations made
against them.

STAFF OF THE AUDITOR GENERAL-SECTION 314

According to Section 314, an act of parliament must provide for the appointment
of a board that will employ persons to assist the Auditor General in the exercise
of his or her functions, and must also provide,

(a) The qualifications of those persons,

(b) The conditions of service, conduct and discipline of those persons,

(c) The independence, impartiality and integrity of those persons and

(d) The organization, efficiency and wellbeing of the Auditor General.

According to an online newspaper by Machaya.P published on 24 October 2023,

the acting auditor General then R Kujinga told parliament’s portfolio committee
on public accounts staff shortages are so bad that the department is outsourcing
some audits because of skilled staff deficiency with 125 vacant post to be filled.

More so referring to Audit Office Act Chapter 22:18, Section 26 (a) states that the
funds of the Audit office shall consist of moneys appropriated by Act of
Parliament for salaries and allowances payable to and in respect of members of
the Audit office and the recurrent administrative expenses of the office.

Moreover the Audit Office Act Chapter 22:18 Section 22 (6) talks about the
discipline of members of audit office, Section 23 states that the investigation and
adjudication of misconduct cases, subject to Section 25 any case involving
misconduct or suspected misconduct on the part of the members of the Audit
Office shall be investigated, adjudicated upon and where appropriate punished
by the board or authority as may be prescribed

Section 24 (1) states that the removal of members from the Audit office of the
Auditor general advises the board that a member of the Audit office who has
been confirmed as a member under Section 20 (2) is alleged to have committed
such an act of misconduct as may justify the members discharge from the Audit
office, the board shall appoint a disciplinary committee. The disciplinary
committee will follow a procedure. Penalties or alternatives to discharge that it
may impose upon a member found to have committed an act of misconduct shall
be prescribed

Furthermore in relation to Section 25 (a) of the Constitution of Zimbabwe states

that any member or former member of the Audit office who is aggrieved by any
decision or (b) any penalty imposed upon him or her, in respect of misconduct
committed or alleged to have committed by him or her may subject to this to
appeal against this decision or penalty to the labor Court with thirty days from
the date of the imposition of the penalty. Section 90 and 93 of the labor Act
Chapter 28.01 shall apply the necessary changes in relation to any appeal.

According to the Constitution of Zimbabwe Section 315 (1) An act of Parliament

must prescribe procedures for the procurement of goods and services by the
State and all instigations and agencies of government at every level , so that
procurement is effected in a manner that is transparent ,fair honest, competitive
and cost effective and that is through the provisions of three quotations from
suppliers , (2) an Act of Parliament must provide for the negotiation and
performance of the following State contracts

(a) Joint venture contracts

(b) Contracts for the construction and operation of infrastructure and facilities,

(c) Concessions of mineral and other rights to ensure transparency, honesty, cost
effectiveness and competitiveness.

Section 316:

Management of Statutory Bodies

According to the constitution of Zimbabwe (2013) section 316 states that:

"An act of Parliament must provide for the competent and effective operation of
statutory bodies and, in particular, must insure that their chief executive officers
serve for limited periods whose renewal depended on the efficient performance
of their duties".
 The management of statutory bodies as articulated in Section 316 of the
Constitution(2013) aims to promote good governance(by setting clear rules for
management which will lead to effective performances), accountability(being
responsible for their own actions), and transparency (thus being straight
forward in all their dealings hence they should not hide anything.

For example: Since it is the duties of the Audit General to audit public authorities
such as Council if they found any fraudulent representation of financial
statements they should not hide anything in their reports thus being transparent
and should not accept bribes thus promoting good governance.

Section 317:

The Reserve Bank of Zimbabwe

Hanke.S in Lesser .H (2008) defined The Reserve Bank of Zimbabwe as an

inflation -fueling money machine that should be abolished (to end something)
and replaced by national currency board that restores stability and growth of the
country's economy. Therefore in Zimbabwe The Reserve Bank of Zimbabwe is the
bank of all banks meaning that it is the one that is responsible for to regulate the
monetary system?

Objectives of RBZ

As highlighted in the Constitution of Zimbabwe (2013) on Section 317(1)

a) "To regulate the monetary system"

Sets monetary policy to control the supply of money and credit in the economy
such as

* Setting interest rates (adjusting interest rates to influence borrowing and

spending)

* Reserve requirements (Determining the percentage of deposits that banks

must hold in reserve)

* Open market operation: (Buying and selling government securities to

influence the money supply)

* Monitoring and controlling the flow of foreign currency.)

b) To protect the currency of Zimbabwe in the interest of balanced and
sustainable economic growth.

c) To formulate and implement monetary policies (for example the 2% tax

implemented by Mhullie Ncube on Immediate Money Transfer Tax (IMTT).

Subsection 2 states that an act of Parliament may provide for the structure and
organization of the Reserve Bank of Zimbabwe and confer or impose additional
functions on it.

AUDIT ACT

The *Audit Office Act [Chapter 22:18]* of Zimbabwe establishes the framework
for the operations of the Comptroller and Auditor-General (CAG), aiming to
ensure accountability and transparency in the management of public finances.
Below is a summary addressing its provisions, objectives, weaknesses, and how it
enhances the independence of the CAG.

Summary of Provisions
The Audit Office Act [Chapter 22:18], enacted in 2009 and operational since
2011, outlines the structure, duties, and powers of the CAG and the Audit Office
in Zimbabwe. Key provisions include:

1. *Establishment of the Audit Office*: The Act establishes the Audit Office as a
public office, separate from the Public Service, tasked with supporting the CAG in
auditing public accounts (Section 5).

2. *Appointment of the CAG*: The CAG is appointed by the President after

consultation with the Public Service Commission. The Act specifies qualifications
(e.g., at least five years of senior public service experience) and tenure conditions
(Section 3).

3. *Duties of the CAG*: The CAG is mandated to audit public accounts of

Zimbabwe annually, including those of government ministries, public entities,
and state property, reporting findings to the House of Assembly (Section 6).

4. *Powers of the CAG*: The CAG has broad investigative powers, including access
to all relevant documents, the ability to summon persons for examination, and
the authority to contract external audits if needed (Section 8).

5. *Audit Reports*: The CAG must submit an annual audit report to Parliament,
ensuring transparency and parliamentary oversight of public finances (Section
6).

6. *Staffing and Administration*: The Act provides for the transfer of personnel
from the Public Service to the Audit Office and establishes an Audit Office Board
to manage its affairs (Sections 10-12).

7. *Removal of the CAG*: The CAG can only be removed by the President if the
House of Assembly passes a resolution with more than half its membership citing
inability to perform duties or misbehavior (Section 4).

Objectives

The primary objectives of the Audit Office Act are:

1. *Promote Accountability and Transparency*: By mandating annual audits of

public accounts, the Act ensures that public funds and state property are
managed responsibly.

2. *Safeguard Public Resources*: The CAG is tasked with verifying that

reasonable precautions are taken to protect public moneys and assets (Section
7).

3. *Support Parliamentary Oversight*: Audit reports submitted to the House of

Assembly enable lawmakers to scrutinize government expenditure and hold
public officials accountable.

4. *Enhance Good Governance*: Through independent audits, the Act aims to

reduce mismanagement, corruption, and inefficiency in the public sector.

Weaknesses

While the Act provides a framework for public financial oversight, it has several
weaknesses:

1. *Lack of Enforcement Powers*: The Act does not grant the CAG direct
authority to enforce recommendations or penalize non-compliance by audited
entities, limiting its effectiveness.

2. *Dependence on Executive for Funding*: The Audit Office’s budget is approved

by the Treasury, which can undermine its operational independence by
subjecting it to executive influence or delays.

3. *Appointment Process Concerns*: Although the President must consult the

Public Service Commission, the appointment process lacks broader
parliamentary involvement, raising questions about impartiality.

4. *Limited Follow-Up Mechanisms*: There are no clear provisions for ensuring

that audit findings are acted upon, often resulting in recurring issues being
reported without resolution.

5. *Resource Constraints*: The Act does not adequately address staffing and
capacity challenges, such as competitive remuneration to attract skilled auditors,
which hampers the Audit Office’s efficiency.

6. *Potential for Political Interference*: Despite protections, the CAG’s removal

process involves the President, introducing a risk of executive pressure,
especially given Zimbabwe’s history of political dynamics.

How It Enhances the Independence of the CAG

The Act includes several measures to bolster the independence of the CAG,
though some gaps remain:

1. *Separate Public Office*: By establishing the Audit Office as a distinct entity

outside the Public Service, the Act reduces direct control by the executive branch
(Section 5).

2. *Secure Tenure*: The CAG’s tenure is protected, with removal requiring a

parliamentary resolution supported by a majority of the House of Assembly,
safeguarding against arbitrary dismissal (Section 4).

3. *Constitutional Backing*: The Act aligns with Section 106 of the Zimbabwe
Constitution (before the 2013 Constitution), which mandates that the CAG
should not be subject to direction or control by any authority other than
Parliament in performing audit functions.

4. *Broad Audit Powers*: The CAG is granted unrestricted access to records and
the authority to summon individuals, ensuring freedom to investigate without
interference (Section 8).

5. *Direct Reporting to Parliament*: By requiring the CAG to report directly to the

House of Assembly, the Act minimizes executive influence over audit findings and
enhances accountability to elected representatives (Section 6).

Conclusion

The Audit Office Act [Chapter 22:18] provides a foundation for promoting
financial accountability in Zimbabwe by empowering the CAG to audit public
finances independently. Its provisions aim to ensure transparency and safeguard
public resources, but weaknesses such as the lack of enforcement powers,
potential executive influence in budgeting and appointments, and resource
constraints limit its effectiveness. While the Act enhances the CAG’s
independence through secure tenure, direct parliamentary reporting, and broad
investigative powers, strengthening enforcement mechanisms and further
insulating the office from executive control could improve its impact on
governance and accountability
REFERENCES

1. Auditor General’s Report. (2019).Report of the Auditor General on the

financial statements of the Ministry of Finance and Economic Development
for the Year Ended December 31, 2018.
2. Chikwati, T. (2017).The Role of the Auditor General in Promoting Good
Governance in Zimbabwe. Journal of Accounting and Management,7
3. Republic of Zimbabwe. (1983).Audit Office Act(Chapter 22:18)
4. The Herald. (2020).Auditor General’s report: A wake up call for government.
The Herald, March 10, 2020.
5. Public Service Commission. (2020).Determination of Salaries and Benefits
for Public Servants.
 6. Zimbabwe independent. (2018).Auditor General’s office committed to
confidentiality. Zimbabwe Independent, June 22, 2018.

7. Lesser.H (2008) News report recommends Zimbabwe Abolish its Central

Reserve Bank. Washington, DC.27 June 2008.

8. The Constitution of Zimbabwe (2013)

9. Zimlive.com.https://www.zimlive.com.published on 224 October 2023 by Prince

Machaya.