Zimbabwe's local grappling with poor governance issues

Local authorities in Zimbabwe are grappling with weak corporate governance issues, as highlighted in the 2023 report by Acting Auditor General Mrs. Rhea Kujinga. The report, presented to Parliament last week, revealed an increase in governance issues from 139 in 2022 to 190 in 2023. Problems include weak internal control over inventory, poor cash management, absence of bank reconciliations, unsupported adjustments, incomplete records, and delayed financial statement submissions.

The report emphasizes the need for local authorities to adopt technology, such as e-procurement and e-filing, to improve accountability and efficiency. The lack of full automation in accounting systems has led to delays in financial reporting and compromised document retention, resulting in incomplete records.

Revenue collection and debt recovery issues were prevalent, with 81 findings reported. Local authorities lost revenue due to incomplete or outdated databases and non-billing of revenue. Many councils recognized revenue on a cash basis, resulting in incomplete receivables.

Procurement processes also faced scrutiny, with 21 issues reported. Instances of unsupported expenditure and non-compliance with procurement procedures were noted. For example, Kadoma City Council paid US$13,500 for an ambulance conversion without following proper procedures, and Gweru City Council failed to provide procurement documents for assets worth ZWL$9.8 million.

Additionally, most local authorities did not maintain comprehensive asset registers or revalue assets to reflect fair values, leading to undervalued assets and inadequate planning for asset replacement. Service delivery issues remained a challenge, with infrastructure failing to keep pace with growth in areas such as water, sewerage, and waste management. Mrs. Kujinga urged local authorities to enhance governance and embrace technological solutions to address these issues and improve service delivery.