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Gweru City Council in financial scandal
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A damning 2024 Auditor-General's report has exposed deep-seated financial mismanagement at Gweru City Council, revealing unreconciled bank variances amounting to ZWL$4,9 billion, missing asset records, and unauthorised journal entries - raising fears of potential fraud and systemic governance collapse.
The report highlights unresolved variances between bank balances and financial statements, including ZWL$422,9 million for 2022 and ZWL$93,4 million for 2021. According to the Auditor-General, no monthly bank reconciliations were carried out, creating room for irregular transactions to go undetected.
"The council did not have adequate internal control measures such as input validation controls," the report stated.
"Financial statements may be materially misstated. Council should ensure all supporting documentation is safely kept for future reference."
The audit also flagged unauthorised journal entries - ZWL$44,2 million in 2024 and ZWL$699,1 million in 2021 - attributed to weak oversight.
Additionally, the Auditor-General found that Gweru has not maintained an updated asset register since 2010, in violation of the Public Finance Management Act. Key infrastructural assets such as roads, sewer systems, and bridges were excluded from the financial records, making it impossible to confirm their completeness or value.
"This is contrary to the Public Finance Management Act [Chapter 22:19] section 49(1)(a), which requires council to keep full records of its financial affairs," the report noted.
The local authority also failed to account for its stake in the Gweru City Vehicle Parking Management Company in its financial statements, a breach of international accounting standards.
In its response, council management pledged to address the irregularities in future financial reports.
The report highlights unresolved variances between bank balances and financial statements, including ZWL$422,9 million for 2022 and ZWL$93,4 million for 2021. According to the Auditor-General, no monthly bank reconciliations were carried out, creating room for irregular transactions to go undetected.
"The council did not have adequate internal control measures such as input validation controls," the report stated.
"Financial statements may be materially misstated. Council should ensure all supporting documentation is safely kept for future reference."
The audit also flagged unauthorised journal entries - ZWL$44,2 million in 2024 and ZWL$699,1 million in 2021 - attributed to weak oversight.
"This is contrary to the Public Finance Management Act [Chapter 22:19] section 49(1)(a), which requires council to keep full records of its financial affairs," the report noted.
The local authority also failed to account for its stake in the Gweru City Vehicle Parking Management Company in its financial statements, a breach of international accounting standards.
In its response, council management pledged to address the irregularities in future financial reports.
Source - Southern Eye
