Bindura neglects billing 1,598 households

Bindura Town Council has come under fire following revelations that it neglected to bill 1,598 households in the Garikai area for water services, resulting in a significant loss of revenue. The disclosure is part of the Auditor-General's report on local authorities for the 2024 financial year, which highlights serious discrepancies in the council's management and service delivery.

The audit findings indicate that these 1,598 households had access to municipal water but lacked water meters, leading to non-billing. In some instances, however, records showed that an estimated average of seven cubic meters (m3) of water per month was billed to certain households in the area.

As a result, the municipality lost an estimated ZWL$12.1 million in potential water revenue, a situation described as a breach of the Statutory Instrument (SI) 144 of 2019, Section 42(4), which mandates that all revenue be properly safeguarded and accounted for.

"The municipality did not bill 1,598 households in the Garikai area that were receiving municipality water as the households had no water meters," the report states. "This was contrary to the law, and the lack of proper billing resulted in significant revenue loss for the local authority."

The Auditor-General recommended that the municipality take immediate steps to install water meters at all Garikai households to enable accurate billing for water consumption.

In response, the Bindura Town Council management has acknowledged the issue, stating that they have engaged with Garikai residents to install individual water meters, and steps are being taken to rectify the situation.

Beyond the water billing issue, the Auditor-General's report also raised several other concerns regarding Bindura Town Council's financial and asset management practices.

One notable issue was the municipality's failure to value and account for inventory, including medical drugs, as of December 31, 2023. According to the report, this is in violation of the International Public Sector Accounting Standards (IPSAS) 12, which requires that all inventory items be accounted for properly.

In addition, the council made an advance payment of US$90,850 in 2018 to a supplier for a front-end loader without obtaining a bank guarantee, in contravention of the Public Procurement and Disposal Act [Chapter 22:23], which prohibits such payments unless a guarantee is provided. To date, the front-end loader has not been delivered, and the Auditor-General has recommended that the council take appropriate action to recover the advance payment and safeguard public assets.

"We are seeking a resolution from the municipality to engage lawyers, since it's now a long outstanding issue," the Auditor-General said.

The report also raised serious concerns regarding the municipality's water supply, highlighting contamination due to illegal gold panning activities upstream from the town's water source. Lab tests on the raw water indicated significant pollution, leading to higher costs for water purification.

The municipality was found to be using 25 bags of water treatment chemicals per day, far exceeding the ideal usage of seven bags. This excess use of chemicals resulted in increased costs, which could further strain the council's financial situation.

"The municipality risks financial losses due to these increased costs, and the quality of water may compromise the health of residents," the report warned.

In response to this issue, the Auditor-General recommended that the council engage with the parent ministry, the Zimbabwe National Water Authority (ZINWA), the Environment Management Agency (EMA), and other relevant stakeholders to address the pollution and ensure the safety and quality of the town's water supply. Bindura Town Council management has indicated they will continue to work with the authorities to tackle this ongoing challenge.

The audit findings underscore significant gaps in Bindura Town Council's management practices, particularly in terms of revenue collection, asset management, and service delivery. While some measures have been initiated to address the water meter issue, the council must take immediate action to remedy other financial and operational challenges highlighted in the report.

The Auditor-General's office has called for the council to ensure greater accountability and transparency in its financial operations to prevent future losses and safeguard public assets. As these issues are addressed, residents of Bindura will be hoping for improved service delivery and more effective governance in the future.