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Nyemudzai Kakore

Herald Correspondent

Harare City Council was prejudiced of over $179 000 by three employees from the treasury department, who fraudulently credited several ratepayers’ accounts using fake Real Time Gross Settlement system.This was revealed by an audit instigated by acting town clerk Mrs Josephine Ncube following a tip-off from a concerned ratepayer after his account had been fraudulently credited with $2 000.

According to the recent minutes of the council’s Audit Committee, the employees were recruiting and receiving kick-backs, and they then created fake RTGs, which they later authenticated and caused to be receipted.

“Audit established that Council was prejudiced of at least $178 594,28 through receipting of fake RTGS, crediting several ratepayer accounts,” reads the minutes.

“Two City Treasurers Department clerical officers in collusion with the Error Correction Clerk in charge of the RTGS office asked for huge kick-backs as high as 50 percent of the reduced amount from ratepayers to have their account balances significantly reduced.”

Council also resolved that the acting finance director Mr Tendai Kwenda reports the employees to the police, reverses the identified fraudulent transactions and enforces payments of the outstanding amounts on the involved ratepayers’ accounts.

“Council resolved that disciplinary action be taken against two employers named in the audit manager’s report for their roles in the fraud,” reads the minutes.

“The acting finance director should engage banks and ensure all transactions are adequately narrated to enable proper identification. A register should be put in place immediately for all incoming RTGS vouchers and the identity of the conveyor should be recorded in that register.”

Other recommendations are that all individuals who verify an RTGS should record their names and append their signatures on the face of the voucher.

Audit Committee chairperson Councillor Enock Mupamawonde raised concern on the loss of funds by council through fraud and theft and called on city officials to implement previous Audit Committee resolutions to timeously curb revenue leakages.

Recently, three city employees swindled the city of more than $30 000 through the fraudulent issuance of food handlers and medical examination certificates at Beatrice Infectious Diseases Hospital.

“Council should take action against officials who fail to implement Council resolutions without any reasonable excuse. Officials should be held accountable for any losses attributable to their dereliction of duty,” read the minutes.

The Audit Committee then tasked Mrs Ncube to formulate and implement the whistleblower and non-retaliation policies after she revealed that the whistleblower can only be absolved by the police and the Prosecutor-General.

Mrs Ncube said that request was submitted to the State Procurement Board to be included in the policy for parastatals and was still awaiting feedback.

Council also resolved that Mrs Ncube applaude the whistleblower for his stance against corruption and that the $1 000 cash payment should be written off from his rates account.