HARARE – Audit firm BDO International has been threatened with legal action over a forensic audit report that has been used by authorities to allege the theft of US$95 million in pension funds.
Former public service and social welfare minister Prisca Mupfumira was arrested in July on the strength of the report.
Lawyers representing Robin Vela, the former chair of state pensions body, NSSA, who is also implicated in the report, have written to BDO’s global headquarters in Belgium, giving the firm two weeks to dissociate itself from the report or risk a lawsuit in excess of US$5,5 million.
“Our client has clearly outlined instances where BDO Zimbabwe investigators exhibited gross incompetence in the manner they executed their duties,” a letter sent to BDO global CEO Keith Farlinger reads, adding: “BDO International being liable on the basis that its international brand has lent professional credibility to the shenanigans of BDO Zimbabwe.”
The report is already the subject of civil litigation after Vela asked the High Court to set it aside on account of incompetence, claiming it was a “political hit job” conducted by unqualified persons and contained numerous errors.
“The report deals with the Africom issue and gives a deemed actual loss to NSSA of US$303,140 which is incorrect. In fact, the transaction NSSA undertook with ZAMCO and the Ministry of Defence resulted in a profit restatement of US$15.5 million to NSSA. Not recognising this is incompetent,” an affidavit submitted as part of the court challenge, and sent to BDO, reads.
“The partner who signed off the report and none of the persons who worked on it are qualified or accredited as forensic investigators by any institution, reputable or otherwise, and could not have carried out a forensic investigation.”
Admire Rubaya, one of the lawyers representing Vela, has written to the minister of labour Sekai Nzenza, who oversees NSSA, offering US$1 million in surety for an independent forensic audit undertaken by an international firm.
“Mr Vela has further instructed us to advise you that he is prepared to put down a security deposit of US$1 million for the appointed forensic auditors’ expenses to be forfeited should their findings contradict his assertions,” the letter read.
Efforts at securing comment from BDO International were unsuccessful, as an email sent to the company had not received a response at the time of publication.
