Auditor-General raps councils Mrs Mildred Chiri
Ms Chiri

Ms Chiri

Herald Reporter
THE Auditor-General Mildred Chiri says most local authorities are operating without audited financial statements and are not remitting their statutory obligations in violation of the law. She made the observation in her December 2014 report. Mrs Chiri said this was a violation of Section 305 and 306 (3) of the Urban Councils Act and the Rural District Councils Act.

Mrs Chiri said she first made the observations in her narrative report of 2012. The local authorities include Bulawayo, Harare, Mutare City Council, Kwekwe City Council, Gweru City Council, Kadoma City Council, Umguza Rural District Council and Zibagwe Rural District Council. Mrs Chiri said a number of local authorities were facing liquidity challenges.

“The majority of local authorities were behind in remitting statutory deductions to NSSA and Zimra due to liquidity challenges. The local authorities included Kadoma City Council and Bindura Municipality,” Mrs Chiri said. Mrs Chiri said Kadoma City Council was operating without a valuation roll.

“In the absence of an updated valuation roll, there was no basis of rates being charged by the (Kadoma) City Council,” she said. The Auditor-General said some local authorities had no records for stand sales making it difficult to have a record for revenues and debtors under review.

Mrs Chiri said some local authorities were paying in advance for goods and services not delivered. She also said heads of department at Tongogara Rural District Council were paid unapproved monthly mileage and housing allowances.

“The audit findings warrant management’s attention and those charged with governance. Audit revealed that most of the weaknesses emanated from governance issues, revenue collection and debt recovery, employment cost and procurement of goods and services,” she said.

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