GOVT TO TIGHTEN INTERNAL CONTROL SYSTEMS | Govt should tighten internal control systems in both public and private organisations to curb revenue leakages, Vice President Phelekezela Mphoko has said.
His sentiments come at a time when the country is reportedly losing millions of dollars due to externalisation, tax evasion and smuggling due to high rates of corruption.
Officiating at the 3rd Internal Control Congress for Africa organised by the Internal Control Institute of Zimbabwe (ICIZ), which opened here yesterday, VP Mphoko said criminal activity at border posts and organisations can only end with the enactment of robust internal control systems.
Internal control systems are used in accounting and auditing as a process for assuring achievement of an organization’s objectives in operational effectiveness and efficiency, reliable financial reporting and compliance with laws, regulations and policies.
“Most organisations fail due to lack of adequate internal control and requisite knowledge to institute robust internal control. It’s important to come up with a holistic approach towards developing robust internal control in our organisations at all levels,” he said. VP Mphoko said parastatals were losing millions of dollars due to weak internal controls. He said there was a need for serious interrogation of all internal systems and a review of outdated internal control as people were getting more sophisticated due to technological advancement, adding that this is important in order to curb cybercrime.
“The importance of sound internal control in government operations cannot be overemphasised. As Government we need robust internal control systems to curb revenue leakages especially in those institutions mandated to collect revenue such as Zimra and Zinara. Internal control systems need to be strengthened at our porous borders in order to curb revenue loss and criminal activity and we can all do this if we fight together,” said VP Mphoko. He said some of the key issues to look into include control environment, risk assessment, control activities as well as information and communication.
The VP said policy makers the world over were seized with the urgent need to engage in internal control in response to significant losses incurred by organisations. He said the convening could not have come at a better time for Africa in general and Zimbabwe in particular in both public and private sector as now when cybercrime is an issue.
VP Mphoko noted that internal controls assists to instil discipline among the workforce hence both public and private institutions need to measure up with this new technological challenge to curb crime bedevilling the nations.
The conference ends today.