Published: 40 mins ago

Gweru City Council has once again come under scrutiny after the Auditor-General's (AG) 2024 report revealed serious financial irregularities, including failure to confirm receipt of a ZWL226,9 million government grant, overpayment for equipment, and poor record-keeping.

The report, tabled in Parliament recently, shows that devolution grants disbursed by the Local Government ministry in 2021 were deposited directly into the council's rates account without proper documentation to distinguish them from bill payments.

"As a result, council did not avail confirmation or proof of receipt for the government grant income received amounting to ZWL226,9 million (ZWL95,1 million: 2021)," the report stated.

This omission contravenes section 286(1) of the Urban Councils Act [Chapter 29:15], which requires councils to keep accurate financial records.

Council management admitted that the ministry deposits devolution funds without written documentation, forcing officials to confirm disbursements informally with accounts officers.
"Management will ensure proper documentation for all future government grants," the council said in response.

The AG also flagged an overpayment in the procurement of a backhoe loader. Although the equipment was valued at US$82 330, records show the council paid US$102 048 — an excess of nearly US$19 000. No explanation was provided.

"The council should prepare supplier reconciliations to ensure that such instances do not recur," the AG recommended.

Council explained that the purchase was made using foreign currency obtained from the auction system, which was remitted directly to the supplier. However, it emerged that a deposit had already been paid separately, resulting in the overpayment. Management pledged to investigate and recover the excess.

On expenditure, the AG noted that Gweru council failed to provide supporting documentation - such as invoices and requisitions - for ZWL883 million worth of transactions (ZWL155 million in 2021).

"This was contrary to Statutory Instrument 144 of 2019 section 71(1), which requires expenditure to be supported," the AG said.

Council management blamed poor record-keeping and use of proforma invoices, but promised to trace missing documentation and strengthen controls.

The AG also cited weak internal systems, including reliance on manual records for goods received and inadequate storage of vouchers.

The 2024 report further criticised council for failing to adequately address issues raised in the 2023 audit, raising concerns about accountability and governance in the local authority.
- Southern Eye