Parliament flags Gweru, Hwange councils' finances

Parliament's Public Accounts Committee (PAC) has raised serious concerns regarding financial management in the Hwange and Gweru municipalities, highlighting significant delays in submitting financial statements, staff shortages, and reliance on outdated systems, all of which have undermined transparency and accountability.

In Gweru, the local council has struggled to submit financial statements for the period between 2020 and 2022. Acting town clerk Livingston Churu admitted before the PAC that staff shortages and salary backlogs had severely impacted the council's ability to meet statutory deadlines.

"The substantive director of finance had been unwell since 2019 and passed away in 2021, leaving a gap that disrupted operations," Churu explained.

To manage the heavy workload, the council resorted to hiring students and graduate trainees to manually reconcile bank transactions, a process prone to errors and time-consuming. Moreover, Gweru's reliance on the outdated Promun accounting system, which was described as inadequate for handling the volume of transactions, exacerbated the problem.

The PAC report stated, "Given the volume of transactions Gweru City Council handles, the Promun system is too small for its stature." It recommended an upgrade to a more robust system by December 2024 to enhance operational efficiency and ensure timely reporting.

Hwange has faced similar financial challenges. Both the local board and rural district council (RDC) have failed to submit financial statements from 2019 to 2022. Acting CEO of Hwange Local Board, Paulos Mabhureni, and CEO of the RDC, Phindile Ncube, both cited staff shortages, financial constraints, and technical failures as the major causes of the delays.

"The finance director left in 2020, and the position remains unfilled, affecting the council's ability to prepare accounts for auditing on time," Mabhureni said.

In 2023, Hwange RDC faced a significant setback when its central server was struck by lightning, forcing the council to recompute its financial records manually, further complicating the auditing process.

"The collapse of Hwange RDC's central server necessitated manual recomputation of the council's books of accounts, a time-intensive process," the PAC observed.

The report emphasized the need for contingency planning, urging Hwange RDC to invest in backup systems and disaster recovery training by August 2024 to prevent similar disruptions in the future.

Both municipalities are grappling with a high turnover of staff, particularly in the finance departments, due to poor working conditions. In Hwange, efforts to fill vacancies have repeatedly failed as candidates declined offers due to low remuneration.

The PAC expressed concern over the impact of unfilled positions, warning that "critical roles in public finance management remain in acting capacities, undermining accountability and efficiency."

The report paints a troubling picture of systemic failure in local governance, with far-reaching implications for public resource management. The PAC warned that the failure to submit financial accounts to the Auditor General undermines transparency and accountability, calling for immediate reforms to address these challenges.

To restore public trust and improve governance, the PAC has recommended modernizing accounting systems, filling key finance positions, and implementing more reliable technical infrastructure. For Gweru, upgrading to a more efficient accounting system is a priority, while Hwange should focus on disaster preparedness and attracting qualified personnel to stabilize its operations.

The PAC stressed that these reforms are not optional but necessary to rebuild the integrity of local governance in Zimbabwe, ensuring public funds are managed transparently and effectively.