admin
Trust Freddy
Herald Correspondent
HARARE City Council has reportedly lost track of trade and other payables totalling more than US$105 million, as the ongoing inquiry into the city’s operations continues to expose a web of financial mismanagement.
ALSO READ :
https://www.herald.co.zw/city-fails-to-account-for-us105m/
https://www.herald.co.zw/harare-councillors-admit-to-looting/
https://www.herald.co.zw/harare-council-splashes-zig230m-on-utility-workshops/
Chairperson of the Finance and Development Committee, Councillor Costa Mande, admitted before the Commission on Tuesday that Harare City Council had no credible finance system.
Clr Mande said the financial system was in shambles, to the extent that they have failed to verify trade and other payables amounting to US$105 542 000.
“As per the Auditor-General’s report, that is indeed true. We had to query the staff and I think there was a recommendation to verify those figures,” he said.
The irregularities were cited by the Auditor-General in her 2020 report, which added that the absence of the requisite Enterprise Resource Planning System (ERP) could have prejudiced the city of millions of dollars that could not be verified then, with the sub-committee saying the total amount of missing money could have increased by now.
The council has been operating without a requisite accounting system since 2019 after a supplier of its Enterprise Resource Planning System, Quill Associates, withdrew its software following a contractual wrangle.
In his submissions, Clr Mande also expressed frustration that despite his committee’s efforts to push for a functional financial system, they had been met with inconsistent excuses from top officials.
He also spoke about the limitations of his role, stating that as councillors, they have no authority to make key decisions as their positions are largely ceremonial.
According to the Auditor-General’s adverse opinion, the council’s financial statements did not accurately reflect its financial situation as at December 31, 2020.
This includes its financial performance and cash flows for that year, which didn’t align with International Public Sector Accounting Standards (IPSA).
Clr Mande clarified that the reported $11 million spent on workshops was actually $2,1 million, used over five months.
He added that the top council official who provided the figures to the Commission of Inquiry had either lied under oath or misled his committee.
When questioned about the justification of spending at least US$400 000 monthly on workshops despite failing to provide basic services, Clr Mande saw no issue, emphasising the
importance of orientation.
But he struggled to explain why a 103-member sports committee was allowed to conduct a workshop using ratepayers’ money.
Many top officials that have appeared before the Commission admitted that lack of oversight and inadequate procurement and accounting practices created fertile ground for abuse of ratepayers’ money.
It also emerged that Council failed to present accounts for all seven of the private companies it owns, including City Parking and Rufaro Marketing (Private) Limited, a property company owned by Harare City Council that rents out former beer halls and bars.
The City’s acting finance director, Mr Godfrey Kusangaya, on Monday told the Commission of Inquiry into the city’s operations that the council’s accounting system was in disarray, and did not conform to requisite accounting principles and standards.
Online Reporter