By NQOBANI NDLOVU COLD Storage Company (CSC) management was evading tax, prejudicing the Zimbabwe Revenue Authority (Zimra) of potential revenue, a recent forensic audit shows. The audit report by Auditor-General Mildred Chiri raised the red flag on CSC’s payroll system for the year 2016. The report shows that CSC did not have a defined and formalised procedure for payroll data changes or any authorisation for the addition of people to the payroll among other anomalies. In three years, CSC management were evading tax as their allowances were being paid outside the payroll. “From our analysis of CSC payroll summaries for the period 1 July 2012 to 30 June 2015, we noted that of the US$1 071 309,37 allowances paid to management, US$660 487 was paid through the payroll while US$410 822 37 was paid outside the payroll and not subjected to tax as required by section 8(10(b) of the Income Tax Act,” the report shows. “There is a potential tax liability on the allowances CSC management received.” While CSC employees were swimming in poverty as the meat processor failed to pay salaries, management cushioned itself with personal loans yet the company had no loan policy, the report added. As of June 30, 2015, CSC owed a total of US$4 024 568 to employees in unpaid salaries and allowances while management was owed $273 152,74. During the time under review, CSC owed the National Social Security Authority and Zimra US$646 257 and US$847 626 respectively for statutory pension and pay as your earn. “Despite CSC being unable to pay employees' outstanding salaries, for the period under review, the company advanced certain staff members within the management grouping personal loans worth US$74 531 21 at an interest rate of 8% per annum and the balance outstanding as at June 2015 was US$26 150,” the audit report read. “The personal loans were approved by human resources director (Moses Mrewa) and the chief executive officer (Ngoni Chinogaramombe) and in some instances by the administration manager (Chagwinya). Mrewa confirmed that CSC does not have a loan policy for employees.”