Harare fails to act on 27 of 28 audit red flags

Residents of Harare have condemned the city council for what they describe as gross negligence, following the Auditor General's 2023 annual report, which revealed that the local authority failed to act on 27 of 28 audit recommendations.

The Harare Residents Association (HRA) said the council had made little to no progress in addressing longstanding governance and financial irregularities highlighted in the audit. The only recommendation implemented was the preparation of inflation-adjusted financial statements, in line with requirements under Financial Reporting in Hyper-Inflationary Economies.

Other critical issues, including poor record-keeping, missing documentation, and violations of accounting standards, remain unresolved. The audit noted that the council continues to rely on an Excel-based asset register for property, plant, and equipment, and key supporting documents for land sales, such as agreements, were missing.

The city's financial statements were also unsupported by underlying accounting records, with subsidiaries not consolidated into the accounts. Furthermore, the council failed to provide a list of creditors accounting for the outstanding balance of ZWL$1.88 billion. Disclosures on employee benefit obligations, employment costs, and related party transactions were entirely omitted.

The report exposed systemic weaknesses, including non-compliance with the Public Finance Management Act and the absence of a disaster recovery system and business continuity plan.

"The council's inaction underscores a culture of impunity that has long undermined service delivery in the capital," said the HRA.

Residents warn that the continued neglect of audit recommendations will intensify calls for urgent reforms at the City of Harare, which has faced years of corruption allegations, deteriorating infrastructure, and financial mismanagement.