Herald Reporter
EIGHT audit firms are bidding to conduct a forensic audit at the Zimbabwe Broadcasting Corporation, covering the period January 1, 2009 to December 31, last year. This follows a request by the Ministry of Information, Media and Broadcasting Services to the Comptroller and Auditor-General to undertake an urgent forensic audit. The closing date for the tender is February 7.
The firms are Price Water House Coopers, Jack and Fields, Ernst & Young, BDO, Welsa International, KPMG, Camelsa and Deloitte.
Two other companies, Ruzengwe and RKF, were disqualified.
Firms that provided audit services to the national broadcaster were not eligible to participate in this tender for ethical and professional considerations.
According to terms of reference for the audit, the firm will be expected to determine ZBC’s adherence to and fulfilment of principles of corporate governance in all aspects, including its interpretation of its mission, adherence to legal or statutory and policy instruments and good practices.
“Assess and test systems and detect any instances of corporate malfeasances and inefficiency for both remedial interventions and systems realignment.
“Determine the authenticity and validity of barter trade transactions that ZBC entered with some of its suppliers and customers and measure the extent of potential prejudice the corporation may have suffered through such dealings if any. Quantify the magnitude of ZBC’s current obligations and likely restructuring costs for the attention of the shareholder,” reads the terms of reference.
The audit firm will also be expected to carry out a comprehensive financial systems audit which should look at all systems, decisions and practices which have underpinned ZBC finances for the past five years and test and assess financial discipline at all levels.
The audit should also explain why ZBC’s finances have failed or collapsed.
“The exercise should look at all areas including budgeting, financing, expenditure, management of revenue inflows, trade terms, procurement or purchase decisions and supply chain management.
“The audit should look at ZBC’s assets management system including its fixed assets, their disposal, management or deployment.
“Specifically, the audit should look at ZBC’s marketing, production and commissioning policies, systems and agreements to determine their integrity, efficacy and responsiveness. Equally, the audit should look at ZBC’s archiving policy both by way of records keeping and as a performing asset that yields revenue for the corporation,” further reads the terms of reference.
The auditors are expected to conduct a human resources audit which should include key issues like manpower policy and needs determination, selection and recruitment regarding philosophy, grading and departmentalization, payroll system and management, performance culture and whole policy on advancement and promotions, labour issues, skills development and deployment.
The auditors will also look at current incentives, their access and distribution and what impact they have on skills attraction and retention on staff motivation, performance and commitment.
The audit should also recommend a business model, development and innovativeness which should help a restructuring exercise by gauging ZBC’s capacity to align itself with and keep adjusting to the larger macro-environment through periodic strategic interventions.
The auditors are expected to determine the planning culture in high-tech, the technological or infrastructural culture (culture of innovativeness at the corporation).
“Equally, it should be able to determine ZBC’s manpower and skills development policies, equip its key functional areas with strategic competences needed for migration to a digital era and beyond.
“Additionally, the audit should gauge ZBC’s readiness to do business in a plural broadcast environment characterised by stiff competition locally, regionally and globally and the removal of statutory sources of revenue.
“The key question of product development and pricing will come into focus, as also does the issue of strategic partnerships regionally and globally.”
At the end of investigations, auditors are expected to submit a comprehensive report to the Auditor-General highlighting findings, recommendation on corrective action to be taken and specific recommendations geared towards greater and better financial management, accountability and corporate governance.
They would be expected to submit the report by March 31, 2014.