News / Local
Zimbabwe's treasury stalls devolution projects
26 Oct 2023 at 01:42hrs | Views
The non-disbursement of devolution funds has resulted in local authorities being unable to initiate or complete numerous development projects, as reported by acting Auditor-General Rheah Kujinga. A Value for Money Audit Report conducted on the monitoring of devolution-funded projects by the Ministry of Local Government and Public Works revealed that discrepancies between budget allocations and actual disbursements ranged from 6% to 94% for the period under review. Despite a budget allocation of over ZWL$23 billion from 2019 to 2021, only ZWL$2 billion was disbursed due to the non-release of funds by the Treasury.
Local authorities were found to be using the funds for projects such as clinics, schools, sewage systems, and boreholes to empower their communities economically. Kujinga emphasized that the non-disbursement of funds was primarily because the Treasury failed to release the allocated funds, leading to threats of litigation by contractors due to non-payment of invoices.
The audit also found that the Ministry of Local Government and Public Works was unable to provide audit work plans and monitoring reports on devolution-funded projects, citing a lack of budgetary allocation for scheduled monitoring visits. Additionally, the operational grants designated for monitoring devolution projects were not disbursed due to the absence of provincial councils, which had not yet been established as a result of legal instruments not being signed into law.
Kujinga recommended that the ministry should improve its monitoring of devolution-funded projects, ensure that disbursed funds are used for approved and budgeted projects, and release funds only when procurement processes are complete and the funds are ready to be utilized. She also suggested the separation of devolution-funded and other financial reports and urged the swift enactment of the Provincial Councils Administrative Amendment Bill into an Act of Parliament to enhance coordination between the ministry and key stakeholders.
Local authorities were found to be using the funds for projects such as clinics, schools, sewage systems, and boreholes to empower their communities economically. Kujinga emphasized that the non-disbursement of funds was primarily because the Treasury failed to release the allocated funds, leading to threats of litigation by contractors due to non-payment of invoices.
The audit also found that the Ministry of Local Government and Public Works was unable to provide audit work plans and monitoring reports on devolution-funded projects, citing a lack of budgetary allocation for scheduled monitoring visits. Additionally, the operational grants designated for monitoring devolution projects were not disbursed due to the absence of provincial councils, which had not yet been established as a result of legal instruments not being signed into law.
Kujinga recommended that the ministry should improve its monitoring of devolution-funded projects, ensure that disbursed funds are used for approved and budgeted projects, and release funds only when procurement processes are complete and the funds are ready to be utilized. She also suggested the separation of devolution-funded and other financial reports and urged the swift enactment of the Provincial Councils Administrative Amendment Bill into an Act of Parliament to enhance coordination between the ministry and key stakeholders.
Source - newsday
