The latest Auditor General’s Report has revealed serious violations of public finance protocols, exposing that over US$597 million disbursed by the Treasury in 2024 on behalf of various Ministries, Departments, and Agencies (MDAs) had not been accounted for as of June 2025.
This significant discrepancy undermines key principles of fiscal responsibility and transparency, which are essential to effective governance and public trust.
A major concern highlighted in the report is the failure by MDAs to accurately upload financial transactions into the Public Finance Management System (PFMS). This gap not only misrepresents government expenditure but also opens the door to possible misuse of funds and corrupt activities.
According to the report:
“Direct payments amounting to US$1,986,391,797 were made to service providers on behalf of the MDAs by Treasury during the 2024 financial year. However, MDAs accounted for US$1,388,673,713, leaving a balance of US$597,718,082 as at June 18, 2025. In some instances, the payments were not uploaded onto the PFMS. MDAs expenditure was understated by the direct payments.”
This shortfall represents a major misstatement of national accounts and raises red flags about the integrity of government financial reporting.
The absence of proper reconciliation mechanisms indicates a systemic failure in internal controls, significantly increasing the risk of fraud and misappropriation of public funds. The report warns that such weaknesses create fertile ground for illicit financial activity.
Further complicating the financial oversight was a five-month interruption of the PFMS during the national currency transition—from the Zimbabwean Dollar (ZWL) to Zimbabwe Gold (ZWG)—which occurred between April and August 2024.
“There was a downtime of the Public Financial Management Systems (PFMS) during the country changeover of currency from ZWL$ to Zimbabwe Gold (ZWG) for almost five (5) months (April to August 2024). During that time most MDAs operated outside the PFMS.
The financial information that would have been processed outside the system was not uploaded onto the system in some cases. Such information would misstate expenditure figures.”
This prolonged systems failure created a critical lack of visibility into public finances, making it nearly impossible to track the movement of funds and heightening the potential for unauthorized transactions.
In addition to financial irregularities, the report also uncovered a sharp rise in fuel mismanagement, with seven MDAs implicated. The Auditor General identified poor documentation, lack of fuel reconciliation, weak supervisory checks, and inadequate segregation of duties as major contributing factors.
“Cases of loss of fuel were on the increase. These were attributed to control weaknesses in fuel management, ranging from non-maintenance of fuel registers, inconsistent fuel recordings, non-performance of fuel reconciliations, absence of segregation of duties and weak supervisory checks.”
The ongoing mismanagement of fuel—a key government resource—reflects a broader neglect of public asset protection, contributing to inefficiency, wastage, and reduced service delivery capacity.
The report’s findings signal a pressing need for stronger oversight, tighter financial controls, and more effective enforcement of regulations. Section 298 of the Constitution of Zimbabwe clearly mandates transparency and accountability in the use of public funds—principles that have been severely undermined, according to the report.
Given the scale and gravity of the irregularities, urgent and decisive action is required. There is a growing call for those responsible to be held accountable, and for institutional reforms to prevent a repeat of such financial mismanagement.
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