Auditor-General (AG) Mildred Chiri’s latest report on local authorities has exposed massive rot, where several councils’ accounts records are in shambles, while others borrowed heavily to finance their day-to-day operations and salary obligations.
By XOLISANI NCUBE
In her latest audited financial reports on local authorities for 2012-2015 tabled last week, Chiri also raised a red flag over misallocation of council resources.
She cited Harare and Chitungwiza municipalities among several local authorities whose operations were funded through bank loans and overdrafts.
“Chitungwiza Town Council was also financing its day-to-day operations through loans and overdraft. As a result, it incurred $1,7 million in interest charges,” the report stated.
The AG also noted that Harare, Chitungwiza, Muzarabani, Plumtree Town Council and Chegutu Rural District Council (RDC) had unsupported expenditure.
She said Harare was failing to utilise its revenue options such as flea markets and rented houses.
“The city council managed to collect only $13 668 (1%) of the expected $2 545 732 from Mbare, Mupedzanhamo and Mukuvisi markets,” the report read.
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The AG also stated that Chitungwiza, which is Zimbabwe’s third largest populated municipality, had 17 119 non-functioning water meters out of 42 251, with Kariba Town Council having 1 019 out of 4 815 taps not metered, a situation that prejudiced the municipalities.
She also stated that Marondera Town Council was losing 51% of its treated water due to dilapidated infrastructure and poor loss control mechanisms.
“Of the 3 142 265m³ water treated and distributed, only 1 548 146m³ was billed to customers,” she said.
On capital expenditure, Chiri said that some local authorities were not doing enough due-diligence before committing their money.
“Marondera Town Council may not have been conducting due-diligence exercises when transacting. In one instance, the council pledged as security $22 million worth of land for a $450 000 loan,” Chiri said.
“Harare City Council spent $243 424 on Coventry Road holding bay in 2014, but no benefit is being derived from that capital expenditure,” she said.
Chiri said Harare failed to provide tender documents for plant and hire contracts.
“Harare City Council, Chegutu, Chimanimani and Tongogara RDC had no lease agreements with tenants.”
