TOP managers at Kwekwe City Council could lose their jobs following a damning audit report produced by two Local Government ministry senior auditors alleging serious fraud and mismanagement of financial resources at the local authority.
Report by Blessed Mhlanga Staff Reporter
The audit recommended that Local Government minister Ignatius Chombo should take disciplinary measures against the implicated officials.
In its preamble the report read: “This Special Audit Report covers period 2009 to 2012 and exposes serious fraudulent and maladministration at Kwekwe City Council
. . . audit has uncovered financial mismanagement and maladministration, especially in the procurement of water chemicals.
“Disciplinary action should be taken against all employees who do not comply with council policies and procedures in order to maintain an effective control environment.”
Acting Treasurer Morris Mutema was fingered in the report as being behind the mismanagement and fraud.
The audit accused Mutema of losing over $100 000 to briefcase companies through the purchase of expensive water treatment chemicals.
“The Acting Treasurer does not appear to appreciate the need to save public funds and deliberately ignores cooperate governance principles for selfish motives,” the report, which was handed over to the local authority on September 24 read.
Mutema has denied allegations of fraud which were first leveled against him by the Kwekwe Residents’ and Ratepayers’ Development Association, urging Chombo to investigate.
He maintained his innocence even in the face of the scathing audit report, but could not give comment due to a Press embargo enforced by town clerk Emmanuel Musara.
The audit also claimed that Mutema would pay for deliveries in advance but failed to follow up to ensure that orders paid for were delivered.
“One tonne activated carbon bought from Waterlily for $3 385 on February 15 was only delivered four months later at a time the local authority is failing to meet its wage and salary bills owing to alleged lack of money,” reads the report.