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NetOne's Viability In Doubt, Warns Auditor-General

8 months agoWed, 17 Jul 2024 10:52:24 GMT
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NetOne's Viability In Doubt, Warns Auditor-General

State-owned mobile network operator, NetOne, is technically insolvent and runs the risk of being unable to continue operating.

According to the latest report by acting Auditor-General (AG) Rheah Kujinga, NetOne’s total liabilities exceeded the total assets by ZWL$32 billion in 2022. She said:

The company’s total liabilities exceeded the total assets by ZWL$32 billion, while the current liabilities exceeded the current assets by ZWL$20,9 billion (2021: ZWL$20,5 billion).

These conditions indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. My opinion was not modified in respect of this matter.

When a company’s ability to continue as a going concern is uncertain, it means there are significant uncertainties about the company’s future viability and its ability to continue operating for the foreseeable future, typically the next 12 months.

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This indicates that the company may not be able to realise its assets and discharge its liabilities in the normal course of business.

Kujinga said the firm’s liabilities exceeding assets caused it to post a loss of ZWL$40 billion for the financial year ended December 31, 2022, widening its loss-making position from ZWL$31 billion. She said:

The company’s control over debt management was not effective during the period under review.

Post-paid customer accounts with outstanding balances were not suspended 90 days after barring of outgoing calls.

This was contrary to the company’s debt management policy, which requires suspension of services 90 days after barring of outgoing calls.

According to the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ), in the first quarter of 2024, NetOne recorded a 5.52% dip in active subscribers to 4 017 167 from the previous quarter.

NetOne’s market share contracted by 6,66 percentage points to 11,84% in the first quarter from the fourth of last year.

More: Pindula News

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21 Comments

Ndevuzoqethu · 8 months ago
All the Mtapa businesses are experiencing financial problems.
Gregory · 8 months ago
Lazarus Muchenje was doing fine as a CEO and then they conspired to fire him and replaced him with a bunch of people who are clueless when it comes to running an entity as big as Netone
kkk · 8 months ago
I remember that rasta guy
. · 8 months ago
Sell Net1 to MTN and Telecel to Vodacom. then our telecommunications problems disappear
rx · 8 months ago
Ukuwo telecel yangosara mudhuri chete chi line chacho ndakachipa Huku ikadya
Anonymous · 8 months ago
Bisai Chairman and the whole board iripo mutsvake vamwe
. · 8 months ago
I don't know why Netone has made it hard to top-up with zig. Actually they are at 98% dollarization.
Anonymous · 8 months ago
Net One airtime and data are practically in US$, and not competitive. How do they hope to gain value or volume market share. Sell the business and cut your losses.
Chibaba · 8 months ago
All because of our clueless leadership.
wasu · 8 months ago
paya vaimbopaa macontract lines kumusangano apaa havabhadhare mabills Juliasdale hotel in nyanga collapsed tuu cz of ds same partan ravo
patz · 8 months ago
Pane parastatal inombo performer here muZim. Hakuna ma business ethics kuma parastatal. Appointments are based of relationships and professionalism is taboo
1
IP Address · 8 months ago
ngaivhare titambudzwe ne Evon
Anyone · 8 months ago
Avon yadii
Izvozvo Tazvihwa Asi Tirikuti · 8 months ago
Zhira yokuenda kwatateguru Telecel
Chiweti Chemunhukadzi · 8 months ago
kukubiwa kuchingopiwa matender enhema kunana Wikinero Chivharo
Mr JP van · 8 months ago
dzosai mafree aya tinomada
Izvozvo Tazvihwa Asi Tirikuti · 8 months ago
Kana njuga dzorema financial jargon rese unorihwa,, Dynamos ndi Dynamos -wo, anotaura mari dzepa ghedhi🤔🤔🤔
...,. · 8 months ago
was it not absorbed by mutapa, and does the ag audit mutapa?
zig · 8 months ago
zvaendwa

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