Zimbabwe's Auditor-General Raises Concerns Over NetOne's Future

Zimbabwe's Auditor-General Mildred Chiri has raised concerns over the ability of state-owned mobile firm NetOne to continue its operations based on many financial risks identified by her office.

NetOne is among a list of state-owned telecom companies that the government has earmarked for privatisation.
However, according to a recent audit report, poor governance practices and financial risks are destroying the company and holding it back from being profitable.

Chiri said that NetOne's liabilities exceed its assets by $59,381,639 and that these conditions prove material uncertainty that casts doubt on the company's ability to continue operating.

Zimbabwe's monetary policy shifts which saw the country change its official currency from the US Dollar to the local Zimbabwe Dollar have also affected NetOne's financial position.

A statement from the NetOne revealed that measures have now been put in place to improve the performance of the company. NetOne added that the focus is on growing its revenue through the improvement of quality of network, customer experience and distribution.

The telecoms firm plans to implement a mobile financial services strategy, establish franchise shops to sell SIM cards and airtime, as well as get approval from the board to perform balance sheet restructuring initiatives that will unlock capital for investment.

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