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Farirai Machivenyika Senior Reporter
Nine local authorities, including Harare, failed to collect at least ZWL$400 million from revenue generating properties they own between January 2016 and December 2021, a value for money audit on the management of the properties by the acting Auditor General, Mrs Rhea Kujinga, has revealed.
Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube tabled the report in the National Assembly on Wednesday last week.
Apart from Harare, the other local authorities sampled by Mrs Kujinga are Ruwa, Chinhoyi, Zvimba, Makonde, Marondera, Chitungwiza, Karoi and Epworth.
“A review of the debtors’ schedule for the period January 2016 to December 31, 2021 for nine local authorities audited revealed that they owed close to ZWL$400 million, due from tenants occupying various properties.
“Only one (Ruwa) out of the nine local authorities audited was effectively collecting revenue from properties. Furthermore, in all nine local authorities audited, billboards were not well managed as there are no registers in place and there was poor monitoring of the erection of billboards. This resulted in residents and companies setting up billboards without payment , leading to loss of potential revenue,” she said.
As at November 2020, Harare was owed ZWL$396 060 279, as at December 31, 2021, Ruwa was owed ZWL$1 518 559, Chinhoyi was owed ZWL$522 722 as at November 2020 while Zvimba was owed ZWL$198 464 during the same period.
As at November 2020, Makonde was owed ZWL$15 693 while Marondera was owed $252 374 during the same period.
“Marondera Municipality had the highest percentage of outstanding rentals of 86 percent as at November 30, 2020, followed by Makonde with 81 percent and Zvimba with 79 percent. Ruwa was the least with 39 percent at the same date.
“The percentage owed for Harare City Council could not be ascertained due to absence of records on the amounts billed and paid,” she said.
Mrs Kujinga also said Chitungwiza Municipality did not avail both the billed and collection schedules to enable her ascertain whether it was billing or collecting revenue from its properties while Karoi Town Council and Epworth Local Board had no revenue generating properties.
Mrs Kujinga said non-collection of rentals negatively impacts on operations of councils including service delivery.
“Non-collection of rentals was attributed to, among other things, non-renewal of leases. My audit revealed that some tenants had no valid lease agreements especially those occupying flats and houses,” she said.
Poor revenue collection by local authorities has negatively affected service delivery in most local authorities characterised by non-collection of refuse and unavailability of portable water.
President Mnangagwa has since appointed a Commission of Inquiry, led by Retired High Court Judge, Justice Maphios Cheda, to probe Harare City Council’s local governance issues since 2017.
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