An Investigation of fraud incidents in Zimbabwe parastatals (2021-2022): a case of Zimbabwe Power Company

Author

Mutasa, Jevas

Title

An Investigation of fraud incidents in Zimbabwe parastatals (2021-2022): a case of Zimbabwe Power Company

Abstract

The study conducted a comprehensive investigation into fraud incidents within the Zimbabwe Power Company (ZPC), specifically focusing on the Harare Power Station. The primary objective was to assess the impact of fraudulent activities on ZPC's financial performance, with particular emphasis on its profitability. Employing a case study design and random selection, the research involved a sample of thirty employees, selected through purposive or judgmental sampling methods. Data collection was achieved through structured questionnaires, ensuring validity and reliability through Cronbach's alpha values ranging from 0.6 to 0.8. Data was analyzed using SPSS 20.0, applying simple linear regression to determine the statistical significance of the findings. The research delved into the root causes of accounting scandals within the state-owned enterprise, identifying key challenges faced by ZPC's management in addressing fraud. Additionally, the study proposed solutions to mitigate fraudulent activities within the parastatal. Findings revealed a significant level of concern among respondents about fraud issues, highlighting a prevalent expectation for management to involve auditors proactively in fraud prevention and detection efforts. This expectation aligns with the broader responsibility of auditors, which extends beyond the primary objective of audits as outlined in ISA 200. The study underscored the necessity for continuous policy implementation and strategic measures to manage fraud effectively. Recommendations included the engagement of qualified external auditors and collaboration with law enforcement agencies to bolster internal control systems. Furthermore, the research suggested that management should enhance its efforts in fraud risk assessment and foster a culture of transparency and accountability within the organization. In conclusion, the investigation highlighted the critical need for robust internal controls and proactive management practices to combat fraud at ZPC. By addressing the root causes and implementing comprehensive anti-fraud strategies, ZPC can significantly improve its financial integrity and operational efficiency, ensuring sustainable profitability and trust in its management practices.

Date

June 2024

Publisher

BUSE

Keywords

Fraud

Zimbabwe Power Company (ZPC)

Impact

Supervisor

N/A