Union ‘loots’ US$60 000 from teachers

14 May, 2017 - 00:05 0 Views
Union ‘loots’ US$60 000 from teachers

The Sunday Mail

Police are investigating Zimbabwe Democratic Teachers’ Union leaders for alleged misappropriation of over US$60 000.
A forensic audit report by Sustainiverse Management Services dated May 3, 2017 said US$60 000 of teachers’ contributions was missing from the union’s accounts.

This prompted ZDTU secretary general Mr Timothy Chinyadza to make a report at Harare Central Police Serious Fraud section (case number CR 1237/07/17).

Police chief spokesperson Senior Assistant Commissioner Charity Charamba said although she could not immediately confirm the investigation, it was apparent that police were seized with the matter if it was recorded under a number.

“Though I personally don’t know about the matter, the fact that the case is recorded under the case number shows that the matter is being investigated by Serious Fraud at Harare Central. I will personally check,” she said.

The audit revealed member subscriptions and funds for an in-house housing scheme “disappeared” without trace from the union’s books last year.

Auditors unearthed that US$38 742 and US$24 297,92 relating to the housing account and the union’s main account respectively could not be accounted for.

“The following factors indicate the existence of material uncertainty that may cast significant doubt of the board’s ability to continue as a going concern. The union incurred a surplus of US$31 604 for the year ended 31 December 2016.

“Expenditure of US$46 965 paid to Bantu Heritage during the year ended 31 December 2016, which we failed to verify the existence of the transactions and the organisation. No adjustments have been made relating to recoverability and classification of recorded amounts of US$38 742 and US$24 297,92 relating to the housing account and the main account respectively which remain unaccounted for and classification of liabilities that might be necessary should the consolidated not continue as a going concern.

“Cash flow forecast for the next 12 months prepared by management has indicated that the consolidated entity will have sufficient cash assets to be able to meet its debts and when they are due.

“The ability of the union to continue as a going concern is therefore dependent on improved income generation and measures to cut down on costs. Directors are pursuing initiatives to turn around the union.

“These include lobbying for more funding from members and various donor organisations in line with the organisation’s objective of improving the livelihoods for Zimbabwean teachers.”

The findings have ignited a power struggle between union president Mr George Mushipe and Mr Chinyadza, with the latter alleging harassment.

He said: “We had decided to resolve the matter in-house but after receiving death threats, I decided to report the matter to the police. This was after the president had failed to give us a satisfactory answer pertaining to the way forward regarding how we were going to recover the missing money. Instead, he engaged people to threaten me.”

Mr Mushipe did not respond to calls from The Sunday Mail.

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