Introduction
Harare, Zimbabwe – June 2025
A disturbing trend is emerging in Zimbabwe’s organisations: fraudsters—often insiders—are siphoning millions by disguising personal payments as statutory remittances to authorities like ZIMRA, NSSA, and ZIMDEF.
Modus Operandi
In these schemes, perpetrators—typically finance staff or senior managers—manipulate accounting systems to make it appear as though payments are being made to statutory bodies. In reality, the funds are diverted to personal or third-party accounts.
A recent high-profile case involved a prominent banker accused of embezzling over US$2.3 million by routing payments meant for ZIMRA into personal accounts. The fraud went undetected for months due to falsified payment confirmations and collusion with lower-level staff.
Global Examples of Similar Fraud
South Africa
A finance officer in the Limpopo Provincial Government was arrested for diverting R5 million in UIF and PAYE payments to shell companies. The fraud was uncovered during a forensic audit triggered by SARS discrepancies.
Kenya
A Nairobi-based NGO lost KES 40 million when a payroll officer created fake NHIF and NSSF entries. The funds were funneled into personal mobile money accounts over a two-year period.
Nigeria
A federal agency discovered a scheme where staff paid themselves under the guise of remitting VAT and pension contributions. The fraud involved fake remittance schedules and forged FIRS receipts.
United Kingdom
A council employee in Birmingham was convicted for diverting £750,000 in National Insurance and PAYE payments to a personal account. The fraud was masked using fake HMRC references.
India
In Maharashtra, a government clerk was caught siphoning 12 million Indian Rupees (about $144 000) by creating ghost employee records and remitting fake EPFO (Employees’ Provident Fund) contributions.
United States
A school district in California lost over $1.5 million when a payroll manager rerouted FICA and Medicare payments to a personal LLC. The fraud was discovered during a routine IRS audit.
Common Red Flags
• Duplicate or inflated statutory payments
• Lack of or fictitious official receipts from ZIMRA/NSSA
• Payments made to unfamiliar or personal bank accounts
• Delays in remittance confirmations
• Manual overrides in accounting systems
How to Protect Your Organization
1. Verify all statutory payments directly with the receiving authority.
2. Use secure, automated payment systems that integrate with ZIMRA/NSSA APIs (Application Programming Interfaces).
3. Segregate duties—no single person should initiate, approve, and reconcile payments.
4. Conduct regular forensic audits to detect anomalies early.
5. Train staff to recognize and report suspicious activity.
Final Word
As forensic auditors, we urge all clients to tighten internal controls and remain vigilant. These schemes are becoming more sophisticated, and early detection is critical.
By Caleb Mutsumba
Mobile : +263 772 466540
Office: +263 – 242 – 300135/8
caleb.mutsumba@crowe.co.zw