Zimbabwe’s public sector financial management is set for a complete overhaul to bring greater accounting transparency through the adoption of an accrual accounting system.
The move was made possible through the launch of the International Public Sector Accounting Standards this Wednesday (yesterday) in the capital.
The country’s public sector financial management has been saddled with accountability and transparency issues for a very long time with the Auditor General’s reports year-in year-out pointing a lot of accounting anomalies as well as avenues for revenue leakages.
With the abolishment of the cash basis accounting system and adoption of the more transparent accrual accounting system used worldwide, the general expectation is that more transparency and accountability in the Zimbabwean public sector is going to be realised explained Mr Tapiwa Chizana president Of Institute of Chartered Accountants of Zimbabwe (ICAZ)
“ For a very long time Zimbabwe has been subjected to revenue leakages and lack of transparency due to the archaic accounting system that it was using,” he said.
The country’s Accountant General Mr Daniel Muchemwa said as government they have embraced the migration from the unrealistic cash basis system to a very practical accrual accounting system with a number of benefits set to be realised on the financial management of the public sector.
“As government we are embracing this migration for transparency and accountability of public finances,” said Mr Muchemwa.
Efficient financial management of public sector is a vital cog for economies world over to achieve growth rates hence for Zimbabwe it is long overdue for the country to achieve its 2030 economic growth aspirations