HARARE, July 18 (The Source) – Zimbabwe Manpower Development Fund (ZIMDEF) recorded a deficit of $386,678 in 2016 compared to a surplus of $6,5 million in 2015, which it blamed on bad debts amounting to $3 million by mainly state enterprises and local authorities.
ZIMDEF, which falls under the Ministry of Higher & Tertiary Education, Science & Technology Development, earns its money from collecting a one percent training levy from companies operating in Zimbabwe.
The money is meant to finance manpower development schemes in connection with vocational education and the training and employment of apprentices in particular industries.
ZIMDEF’s audited financial statements for the year ended December 31, 2016, showed that it recorded total income amounting to $41,4 million in 2016 compared to $48,8 million received in the previous year.
The fund’s total expenditure stood at $41,8 million in 2016 compared to $42,4 million in the prior year on lower administration costs.
Administration expenses declined by 17 percent to $11,3 million from $13,7 million previously.
However, operating costs increased to $30,4 million in the period from $28,7 million recorded in the previous year.
The provision for bad debts accounted for 27 percent of the total administrative costs.
“The deficit reported in the statement of profit and loss and other comprehensive income included the provision for doubtful levy debtors amounting to $3,049,018 and this is reported under administrative costs,” ZIMDEF said in a statement on Tuesday.
Major debtors were state enterprises and local authorities.
“This deficit is from a levy collection point of view owing to debt mainly by hardcore debtors, including some state enterprises and local authorities,” read the statement.
Cash and cash equivalents at the end of the year stood at $3,7 million compared to $5,2 million at the close of the previous year.
Total assets increased to $75,9 million in 2016 from $73,1 million in the prior year.
Current liabilities more than double to $5,8 million from $2,6 million previously.
This story was updated with Zimdef’s statement on Tuesday.