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Manicaland councils in disarray
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The Auditor General (AG) has exposed widespread weaknesses in financial management and accountability across local authorities in Manicaland, raising red flags over service delivery and the risk of fraud.
The latest report reveals that most councils are failing to remit statutory deductions such as LAPF, NSSA, ZIMDEF and PAYE, while also struggling with basic bookkeeping and adherence to international accounting standards.
Chipinge Town Council emerged among the worst performers, receiving an adverse opinion after failing to fill critical staff positions and committing major accounting violations. The council has not revalued its assets since 2009 and failed to properly account for revenue and expenditure from its five schools, a breach of international public sector accounting standards. It also owed ZWL$780,2 million in statutory deductions by year-end, exposing it to penalties and fines.
Rusape Town Council fared little better, with the AG issuing a qualified opinion. The council was criticised for failing to address three audit findings from 2023, including improper handling of foreign currency transactions, hyperinflation reporting, and recognition of investment properties. The AG warned that such neglect could lead to material misstatements in financial reports.
Mutare City Council received a qualified opinion despite progress on some irregularities. The AG questioned payables and receivables from schools worth more than ZWL$1,7 billion due to poor record-keeping and flagged unexplained payments of ZWL$63,5 million to a supplier under a decades-old PABX system contract. The council promised corrective measures.
Chipinge Rural District Council was also issued an adverse opinion after failing to produce supporting documents for staff loans worth ZWL$1,62 billion and relying on an outdated customer database to bill clients, putting ZWL$3,3 billion in revenue at risk.
For Makoni Rural District Council, the AG highlighted failure to recognise construction materials as inventory, as required by accounting standards. The council also struggled to meet statutory obligations, with arrears of ZWL$386 million for PAYE and ZWL$18,83 million for NSSA by December 2023.
While Mutare City Council received some praise for addressing more than half of its 2023 audit findings, the overall report paints a troubling picture of governance in Manicaland's local authorities. The AG concluded that the combination of non-compliance, outdated practices and failure to remit statutory obligations undermines transparency and leaves councils vulnerable to financial loss through fraud and penalties.
Efforts to obtain comment from Ministry of Local Government spokesperson Gabriel Masvora were unsuccessful at the time of publication.
The latest report reveals that most councils are failing to remit statutory deductions such as LAPF, NSSA, ZIMDEF and PAYE, while also struggling with basic bookkeeping and adherence to international accounting standards.
Chipinge Town Council emerged among the worst performers, receiving an adverse opinion after failing to fill critical staff positions and committing major accounting violations. The council has not revalued its assets since 2009 and failed to properly account for revenue and expenditure from its five schools, a breach of international public sector accounting standards. It also owed ZWL$780,2 million in statutory deductions by year-end, exposing it to penalties and fines.
Rusape Town Council fared little better, with the AG issuing a qualified opinion. The council was criticised for failing to address three audit findings from 2023, including improper handling of foreign currency transactions, hyperinflation reporting, and recognition of investment properties. The AG warned that such neglect could lead to material misstatements in financial reports.
Chipinge Rural District Council was also issued an adverse opinion after failing to produce supporting documents for staff loans worth ZWL$1,62 billion and relying on an outdated customer database to bill clients, putting ZWL$3,3 billion in revenue at risk.
For Makoni Rural District Council, the AG highlighted failure to recognise construction materials as inventory, as required by accounting standards. The council also struggled to meet statutory obligations, with arrears of ZWL$386 million for PAYE and ZWL$18,83 million for NSSA by December 2023.
While Mutare City Council received some praise for addressing more than half of its 2023 audit findings, the overall report paints a troubling picture of governance in Manicaland's local authorities. The AG concluded that the combination of non-compliance, outdated practices and failure to remit statutory obligations undermines transparency and leaves councils vulnerable to financial loss through fraud and penalties.
Efforts to obtain comment from Ministry of Local Government spokesperson Gabriel Masvora were unsuccessful at the time of publication.
Source - Manica Post
