Online Reporter
Trust Freddy
Check Point Desk
AT least 10 local authorities have been implicated in a major financial lapse, as a new report from the Auditor-General reveals that they collectively paid nearly US$1 million for goods and services that were never delivered.
According to the 2024 Auditor General report which was recently tabled before Parliament by the acting Auditor-General Rheah Kujinga, some of these fraudulent payments date back as far as 2016.
The report implicates multiple local authorities, including Masvingo, Karoi, Gweru, Kwekwe, Shurugwi, Buhera, Bindura, Mwenezi, Chipinge, Goromonzi, Bulilima and Murehwa.
The report highlights a disturbing trend of local authorities ignoring key provisions of the Public Procurement and Disposal of Assets Act, particularly the requirement for a bank guarantee before making advance payments.
As of May 31, the local authorities had collectively not received goods worth US$783 244 that were purchased years ago, while others had made advance payment in local currency amounting to over ZiG30 million.
According to the report, the Buhera Rural District Council had an outstanding prepayment of US$122 000, which was paid to a local supplier in 2023 for a new CAT 140 G model motorised grader.
The council failed to secure an advance payment guarantee, as mandated by the Public Procurement and Disposal of Assets Act.
As of the audit date, the grader was still undelivered.
The council has since recovered a mere US16 874 and has reported the matter to the police, with the case now before the courts.
Kwekwe City Council is also under scrutiny for a US$63 891 ambulance, purchased in August 2022, which was yet to be delivered by the time of the audit in 2025, despite a contract clause requiring delivery within two weeks.
Similarly, Bindura Municipality made an advance payment of US$90 850 in 2018 for a front-end loader without the necessary bank guarantee, and the equipment remains outstanding.
The municipality’s management, according to the report, was now seeking legal advice to recover the funds.
The report revealed that Mwenezi Rural District Council was still awaiting a Toyota Hilux double cab procured in 2018, and Chipinge Rural Council was yet to receive a backhoe and a front-end loader despite paying US103 308.
Karoi Town Council’s US$109 000 refuse truck, paid for in 2018, also remained undelivered during the period under review.
In another case of financial malpractice, Gweru City Council paid US$102 048 for a backhoe loader that was contracted for US$82 330, resulting in an unexplained overpayment of US$19 000.
Goromonzi Rural District Council made a ZiG6,4 million prepayment for a new truck engine without a bank guarantee, and Masvingo City Council similarly made advance payments of ZiG15 43 million for a pick-up truck, fire tender starter, and dozer repairs, all without the required guarantees.
The report also noted that Masvingo City Council has been waiting for 540 drums of bitumen since 2016.
Other outstanding procurements include 430 bags of cement for Bulilima Rural Council and quarry stones for Murehwa Rural District Council.
