Suspicious loan stalls Zimbabwe Cricket audit

Sport
A SHADOWY bank loan of over $3 million, which has accumulated interest of $3,9m as we write, is one of the items stalling Zimbabwe Cricket (ZC)’s long-overdue audit of 2015, Standardsport can reveal.

A SHADOWY bank loan of over $3 million, which has accumulated interest of $3,9m as we write, is one of the items stalling Zimbabwe Cricket (ZC)’s long-overdue audit of 2015, Standardsport can reveal.

BY DANIEL NHAKANISO/ ENOCK MUCHINJO

The loan now stands at $6,9m.

Two weeks ago, auditors HLB Zimbabwe sensationally disowned what appears to be a fraudulently compiled ZC audit report, revealing in a letter exclusively published by our sister paper Zimbabwe Independent a fortnight ago that they were still waiting for key information from the cricket governing body in order to conclude a credible forensic audit.

It has now turned out that the $3 850 000 loan secured from a local financial institution in 2011 is one of the sticking points raised by the auditors.

Asked to comment on the unearthed loan yesterday, ZC chairman Tavengwa Mukuhlani accused members of his staff and directors of leaking information to the media.

“The audit is still ongoing and I can only comment when it has been completed,” Mukuhlani told Standardsport.

“If I comment about an audit that is still going on, I am basically pre-emptying it and it will defeat the whole purpose. If I start throwing around figures in newspapers, it would not be proper. It’s unfortunate that people are probably leaking privileged information, whether correct or wrong, but I expect some level of professionalism from members of the ZC secretariat and the board because clearly, we now have a problem, where if the board members or members of the secretariat get the information, they are giving it to the newspapers.

“I believe it’s wrong as it defeats the purpose of the audit. We have moved a lot in so far as concluding the audit and we will avail the audit results to the people and I hope the stakeholders will be patient while the audit is still ongoing.”

After unearthing the loan, HLB Zimbabwe requested for documentation on the loan, and details of how it has been serviced since it was secured in 2011.

Curiously, the loan is not recorded in ZC accounts.

Standardsport can now also exclusively report that HLB Zimbabwe, a fortnight ago, asked for a ZC board resolution for the loan to be recorded in the cricket association’s books.

At a ZC emergency board meeting last week, ZC directors endorsed HLB Zimbabwe’s request and resolved that the loan be scrutinised and information handed over to the auditor.

Apart from the loan, The Zimbabwe Independent had also reported that one of the areas of concern in the fraudulent audit report, which Standardsport has a copy of, is an expense of $5,2m listed as “tours expense” — this despite the fact that a majority of Zimbabwe’s series during the year were bankrolled by other parties.