Business

Millions Looted From Government In Botched Car Deals

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The Office of the Auditor-General (OAG) has reported the 2023 audit report to Parliament, and it shows how the Government paid large amounts of money for cars and never got the deliveries.

The Ministry of Finance ordered seven Toyota Hilux GD6 vehicles from Tsapo in December 2022. The OAG reviewed seven vehicles that had not been delivered at the time of concluding the audit in September 2023.

In September 2023, the Ministry of Mines ordered a Toyota Land Cruiser Prado VXL and Toyota Land Cruiser 79 for US$193,000 from Burnett Motors. The Toyota Land Cruiser Prado VXL was delivered in April 2024 without the papers needed to change for ownership. The Toyota Land Cruiser 79 was still to come by May this year.

The OAG reported that in 2022 the Ministry ordered 35 cars from Faramatsi Motors for ZWL$182,621,960. The government was to pay half of the money before delivery in four weeks. The Ministry paid ZWL$ 175,000,000 before supply. They delivered 11 cars, leaving 24 outstanding in May this year.

The Ministry blames currency depreciation and said when the order was made, the cost was equivalent to US$1.8 million. The payments that the government made in 2022 were worth US$888,874, enough for just 17 cars. The Ministry said Faramatsi Motors has now delivered 15 cars and two are left.

The government paid US$8.1 million for 129 cars for the Zimbabwe Prisons and Correctional Services (ZPCS) but didn’t properly book this in the accounts. “Documents relating to the actual amount that was paid were not availed for my inspection. In addition, the actual amount paid was not disclosed in the Appropriation Account.”

In 2023, the government bought cars for the Attorney-General’s office; seven from Byword Trading for US$374,430 and 11 from Paza Buster for US$533,500. The cars should have been delivered in 6-8 weeks. However, by the time of the audit this year, the three Toyota Corollas and four Toyota Hilux 2.8 GD6 from Byword hadn’t come. The four Isuzu D-Max vehicles from Paza Buster were also yet to arrive.

The Master of the High Court bought four Toyota Hilux cars from Croco Motors in 2022 for US$252,657. The agreed delivery was 40 days, but just one had come by June 2023.

Ministry of Sport bought 17 Nissan Navara cars in December 2022 for ZWL$393 171 724 from AMTEC. Only seven were delivered in 2023, and the rest had still not arrived by May this year. “In addition, out of those seven vehicles delivered, four of them were yet to be registered in the name of the Ministry.”

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