News / Local
Zimbabwe govt bolsters oversight of devolution funds
15 Jul 2024 at 16:41hrs | Views
The Zimbabwean government has intensified its oversight of devolution fund usage by metropolitan councils and local authorities to address widespread financial mismanagement. The newly launched Zimbabwe Intergovernmental Fiscal Transfers Manual (IGFT) empowers the Local Government Ministry to withhold or halt devolution fund allocations if misuse or non-compliance with regulations is detected.
The Auditor General's Office has consistently highlighted financial mismanagement and non-adherence to accounting standards in numerous local authorities since the inception of devolution fund disbursements. In her 2022 report, acting auditor general Rhea Kujinga identified irregularities in councils such as Mutoko, Norton, Umzingwane, Umguza, Harare, Hwange, Kusile, Mazowe, Mutasa, and Nyaminyami.
The IGFT manual specifies that the Local Government Ministry may withhold funds if a council fails to comply with regulations, submit required reports, justify under-expenditure, or adhere to public procurement provisions. The Treasury, through the Local Government Ministry, will communicate the reasons for withholding funds to allow the concerned parties time to address the issues.
Funds can only be reallocated in cases of national disasters and emergencies. The manual categorizes fund disbursements as capital and operational transfers to enhance transparency and accountability. Operating costs associated with the general running of local authorities should be financed from their own revenues.
The government allocates 5% of national revenue to provincial and local authorities for devolution funds, with additional allocations beyond 5% determined by the Treasury. Since 2019, the government has aimed to operationalize the provision of 5% of its revenues to lower tiers in line with constitutional requirements for devolution.
The Auditor General's Office has consistently highlighted financial mismanagement and non-adherence to accounting standards in numerous local authorities since the inception of devolution fund disbursements. In her 2022 report, acting auditor general Rhea Kujinga identified irregularities in councils such as Mutoko, Norton, Umzingwane, Umguza, Harare, Hwange, Kusile, Mazowe, Mutasa, and Nyaminyami.
The IGFT manual specifies that the Local Government Ministry may withhold funds if a council fails to comply with regulations, submit required reports, justify under-expenditure, or adhere to public procurement provisions. The Treasury, through the Local Government Ministry, will communicate the reasons for withholding funds to allow the concerned parties time to address the issues.
Funds can only be reallocated in cases of national disasters and emergencies. The manual categorizes fund disbursements as capital and operational transfers to enhance transparency and accountability. Operating costs associated with the general running of local authorities should be financed from their own revenues.
The government allocates 5% of national revenue to provincial and local authorities for devolution funds, with additional allocations beyond 5% determined by the Treasury. Since 2019, the government has aimed to operationalize the provision of 5% of its revenues to lower tiers in line with constitutional requirements for devolution.
Source - The Standard
