Harare fails to account for US$2 billion payroll costs

Debra Matabvu

Senior Reporter

HARARE City Council failed to produce payroll records supporting employee costs amounting to ZWL53,48 billion (about US$2,06 billion), preventing the Auditor-General from verifying one of the local authority’s largest expenditure items and raising concerns over the accuracy of its 2022 financial statements.

According to the latest Auditor-General’s report, the council recognised employment costs of ZWL53,48 billion in its financial statements but could not provide the underlying payroll records needed to substantiate the expenditure.

“The Council recognised employment costs amounting to ZWL53.48 billion which was not supported by underlying payroll records,” the report states.

“I was unable to obtain sufficient and appropriate audit evidence to confirm the accuracy and completeness of employee costs and employee obligations recognised in the financial statements.”

As a result, the Auditor-General said it was not possible to verify whether the reported employee costs and related obligations were fairly stated.

The findings add to longstanding concerns over Harare City Council’s wage bill, which has repeatedly come under scrutiny from auditors and Government.

The local authority has for years been criticised for maintaining a bloated payroll that consumes a substantial proportion of its revenue, leaving limited resources for critical service delivery, infrastructure rehabilitation and capital development.

 

 

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