News / National
Gokwe, Bindura councils fail to document evidence of devolution funds use
18 Dec 2023 at 20:19hrs | Views
ZIMBABWE Coalition on Debt and Development has revealed that Bindura and Gokwe councils in 2022 failed to give proof of how they used the devolution funds that were allocated to them.
Zimcodd made the remarks in its analysis of the Auditor General's report on Infrastructure Development,
"Local Authorities are mandated to maintain key infrastructure like local road networks. Generally, a good road network helps in reducing fatal accidents and lowering the cost of doing business. This leads to increased investment, commerce, job creation, ease of access to markets and powering inclusive economic growth. Since 2019 the government has set aside 5% of the national budget for resourcing the Devolution Fund," Zimcodd said.
"The LAs are then allowed to invest their devolution funds allocations in capital projects like the maintenance of local roads. However, the AG discovered that some local authorities (LAs) are not using their devolution funds as intended. For instance, Bindura Municipality failed to prepare acquittal reports to show how it utilized its devolution funds. Gokwe Town Council used devolution funds worth ZWL$7.3 million in 2020 but failed to document evidence of project implementation."
Zimcodd noted that the foregoing shows that LAs are too prone to financial loss caused by misappropriation of funds.
"The AG report has also shown that infrastructure development in LAs is being inhibited by a lack of compliance with the dictates of the Public Procurement and Disposal of Public Assets Act together with
other procurement laws and regulations," it said.
"It was established that many LAs are undertaking unsupported expenditures (no valid quotations, invoices, receipts, payment vouchers, etc.), purchasing assets without going to tender, fully paying for goods and services that never get delivered, and sometimes overpaying suppliers. All these tendencies prop up corruption and bribery and increase the suboptimal use of public resources."
Zimcodd said in addition, disregard for procurement regulations is a gross violation of basic human rights because it impacts the enjoyment of these rights through poor delivery of public services, high unemployment, poverty, and low life expectancy.
Zimcodd made the remarks in its analysis of the Auditor General's report on Infrastructure Development,
"Local Authorities are mandated to maintain key infrastructure like local road networks. Generally, a good road network helps in reducing fatal accidents and lowering the cost of doing business. This leads to increased investment, commerce, job creation, ease of access to markets and powering inclusive economic growth. Since 2019 the government has set aside 5% of the national budget for resourcing the Devolution Fund," Zimcodd said.
"The LAs are then allowed to invest their devolution funds allocations in capital projects like the maintenance of local roads. However, the AG discovered that some local authorities (LAs) are not using their devolution funds as intended. For instance, Bindura Municipality failed to prepare acquittal reports to show how it utilized its devolution funds. Gokwe Town Council used devolution funds worth ZWL$7.3 million in 2020 but failed to document evidence of project implementation."
Zimcodd noted that the foregoing shows that LAs are too prone to financial loss caused by misappropriation of funds.
"The AG report has also shown that infrastructure development in LAs is being inhibited by a lack of compliance with the dictates of the Public Procurement and Disposal of Public Assets Act together with
other procurement laws and regulations," it said.
"It was established that many LAs are undertaking unsupported expenditures (no valid quotations, invoices, receipts, payment vouchers, etc.), purchasing assets without going to tender, fully paying for goods and services that never get delivered, and sometimes overpaying suppliers. All these tendencies prop up corruption and bribery and increase the suboptimal use of public resources."
Zimcodd said in addition, disregard for procurement regulations is a gross violation of basic human rights because it impacts the enjoyment of these rights through poor delivery of public services, high unemployment, poverty, and low life expectancy.
Source - Byo24News
