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Harare Council Ignores 27 Out of 28 Audit Red Flags

www.263chat.com

By Takudzwa Tondoya

Harare’s residents have accused the city council of gross negligence after the Auditor General’s 2023 annual report revealed that the local authority failed to act on 27 of 28 audit findings.

The Harare Residents Association (HRA) said the council had made virtually no progress in addressing longstanding governance and financial irregularities flagged in last year’s audit.

The only recommendation implemented was the preparation of inflation-adjusted financial statements, in line with requirements under Financial Reporting in Hyper-Inflationary Economies.

However, other findings ranging from poor record keeping and missing documentation to 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.

Key supporting documents for land sales, such as agreements were missing.

The city’s financial statements were also not backed by underlying accounting records and subsidiaries were not consolidated into the accounts.

“The council failed to provide a list of creditors making up the outstanding balance of ZWL$1.88 billion,” the HRA said adding that disclosures on employee benefit obligations, employment costs and related party transactions were entirely omitted.

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

Residents say the council’s failure to act highlights a culture of impunity that has long undermined service delivery in the capital.

The findings are expected to fuel mounting calls for urgent reforms at City of Harare which has faced years of corruption allegations, deteriorating infrastructure and financial mismanagement.

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