News / National
MDC led Local Authorities feast on Devolution Funds
31 Oct 2023 at 05:29hrs | Views
The latest Auditor General's (AG) report has exposed a significant lack of reporting by most local authorities in Zimbabwe over the last three years. According to Section 301(3) of the Constitution of Zimbabwe, at least 5% of the national revenues should be allocated to Local Authorities to fund devolution projects, with 10% for administration and 90% for construction and infrastructure projects aimed at promoting regional economic growth.
However, the AG's report indicates that the information regarding the number of devolution-funded projects implemented between January 2019 and December 31, 2021 is not available, primarily because the Public Works and Local Government Ministry lacked a database. From the review of project reports during this period, it was noted that of the 27 projects planned by the City Council of Harare (CCH) and Ruwa Local Board (RLB), only five were completed.
This lack of progress in completing projects can be attributed to various factors, including funds being used on unapproved projects, delays in utilizing disbursed funds, and misappropriation of these funds. For instance, the CCH spent 74% of disbursed devolution funds on unapproved projects. In 2020, an investigation report by the Ministry of Local Government and Public Works revealed that Kusile/Lupane Rural District Council (RDC) had delayed the utilization of disbursed funds for over six months.
Local Authorities failed to prepare separate books of accounts for devolution, as required by Local Authorities Circular No1 of 2019 issued by the Ministry of Local Government. Consequently, some Local Authorities couldn't account for the disbursed devolution funds. For instance, the City Council of Harare (CCH) couldn't account for devolution funds amounting to $32.6 million. Furthermore, Local Authorities were not submitting acquittals for the disbursed funds.
The AG's report also pointed out that procurement processes were not always aligned with regulations. Projects by CCH and RLB were sometimes not included in their annual procurement plans. Additionally, some Local Authorities faced challenges due to procurement processes starting after funds had been disbursed, making it difficult to use the devolution funds effectively and efficiently.
However, the AG's report indicates that the information regarding the number of devolution-funded projects implemented between January 2019 and December 31, 2021 is not available, primarily because the Public Works and Local Government Ministry lacked a database. From the review of project reports during this period, it was noted that of the 27 projects planned by the City Council of Harare (CCH) and Ruwa Local Board (RLB), only five were completed.
This lack of progress in completing projects can be attributed to various factors, including funds being used on unapproved projects, delays in utilizing disbursed funds, and misappropriation of these funds. For instance, the CCH spent 74% of disbursed devolution funds on unapproved projects. In 2020, an investigation report by the Ministry of Local Government and Public Works revealed that Kusile/Lupane Rural District Council (RDC) had delayed the utilization of disbursed funds for over six months.
Local Authorities failed to prepare separate books of accounts for devolution, as required by Local Authorities Circular No1 of 2019 issued by the Ministry of Local Government. Consequently, some Local Authorities couldn't account for the disbursed devolution funds. For instance, the City Council of Harare (CCH) couldn't account for devolution funds amounting to $32.6 million. Furthermore, Local Authorities were not submitting acquittals for the disbursed funds.
The AG's report also pointed out that procurement processes were not always aligned with regulations. Projects by CCH and RLB were sometimes not included in their annual procurement plans. Additionally, some Local Authorities faced challenges due to procurement processes starting after funds had been disbursed, making it difficult to use the devolution funds effectively and efficiently.
Source - NewZimbabwe
