Commercial Farmers' Union of Zimbabwe

Commercial Farmers' Union of Zimbabwe

***The views expressed in the articles published on this website DO NOT necessarily express the views of the Commercial Farmers' Union.***

Audit reveals rot at GMB

Audit reveals rot at GMB

By Lloyd Mbiba, Staff Writer
Sunday, 18 March 2012 11:51

HARARE – The loss making Grain Marketing Board (GMB), is being run by 
incompetent people who have contributed to its inability to sustain itself 
on commercial activities, an audit report has revealed.

The audit report sent to the Comptroller and Auditor General for the year 
2010 on GMB by Ruzengwe and Company (chartered accountants) has helped shed 
light on how the $136 million debt-saddled parastatal is being mismanaged.

The Forensic findings of the audit revealed that the GMB board was occupied 
by incompetent people who were running the institution to a halt.

“Some of the Board’s key decision making positions are occupied by officials 
of questionable competency. Top management is taking no remedial action to 
ensure that all board officials in the finance section are performing to 
expectations. ……The finance department lacks supervision and control and 
there is no timely presentation of reports to board of directors. 
Incomplete, inaccurate financial reports are produced and presented,” the 
report read.

GMB board consists of chairperson Charles Chikaura, Basilio Sandamu (vice 
chairperson), George Magosvongwe, Sheunesu Mpepereki, Ntombana Regina Gata, 
Ellen Gwaradzimba, Gift Kallisto Machengete, Ephraim Mugugu and Simon 

The GMB wage bill is two times more than the revenue generated and the 
management had no plan in place to address this anomaly, the report further 

“The board’s wage bill is of $10 185 548 (for the year 2009/2010) is more 
than twice the revenue generated from commercial activities ($4 079 980), 
making it clearly impossible for the board to sustain itself on the revenue 
from commercial activities,” reads the report.

“The Board’s plans to contain the losses are not convincing as continuation 
of the current commercial activities at the current operational levels will 
lead to more losses being incurred,” the report warned.

The report noted that there was no evidence to suggest that market surveys 
were carried out before production of mealie meal by Centra (Private) 
Limited, a contractor for the toll milling of GMB’s refined mealie meal.

Furthermore, there is poor credit control by head office, the audit 
revealed. The head office is tasked with credit control according to the GMB 
credit policy.

However, a $37 00 debt incurred by Mutema Brothers supermarkets from the 
Masvingo depot was not reflecting in the head office nor was the debt 
settled as of 2nd July 2010.

The Zimbabwe National Army Head Quarters 3 in Mutare twice bought mealie 
meal form GMB valued at $12 000 on credits and this never reflected in the 
head office nor was the money paid back.

The audit also discovered that the project appraisal tools were absent or 

“There was no evidence to suggest that adequate project tools were in place 
to help assess the profitability of commercial activities which were being 
undertaken by the board.

“The board had no information for analytical procedures such as financial 
reporting on specific operations/activities like milling and bakery 
operations,” the audit report said.

The report said the GMB board had a penchant of making inappropriate 
decisions as evidenced by Centra (private) limited toll milling contract 
which was rewarded without proper considerations.

The auditors said the board’s contract overlooked legal recourse in the 
event of breach of contract and the board only found out after production 
commenced that the contractor had lied and was a competitor involved in the 
roller meal production.

The auditors noted that there was a management deficiency especially in the 
financial sector as they failed to update financial records for the current 
period on the pretext that the board had outstanding audit backlog.

GMB has been torpedoed by malaises as there have been reports of losses, 
debts and maize going bad.

The parastatal general manager Albert Mandizha, while appearing before 
Parliament last month said GMB owes $110 million to 12 different companies 
in Zambia, Malawi and South Africa who sold maize to Zimbabwe in 2007 and 
2008 when there was grain shortage.

The parastatal has lost 55 000 tonnes of maize grain worth about $16 million 
due to poor storage at its 44 depots and silos countrywide.

Senior government officials including cabinet ministers are accused of 
having stolen government-subsidised inputs, including fertilisers meant to 
benefit farmers amid reports the GMB had failed to account for grain 
reserves at its depots.


Killer poacher jailed 18 years

Killer poacher jailed 18 years   3/7/2019 The Chronicle Mashudu Netsianda, Senior Court Reporter A POACHER who ganged up with a colleague and fatally attacked a

Read More »

New Posts: