Council audits unearth scams

via Zvamaida Murwira and Nyemudzai Kakore
AUDITOR-General Ms Mildred Chiri has unearthed serious irregularities in local authorities’ operations that include the corrupt allocation of stands, payment of ghost workers and management awarding themselves salary increments without following laid down procedures.
In her 2012 report, Ms Chiri noted that Harare City Council was collecting rentals for its properties in foreign currency when the tenants had their lease agreements denominated in Zimbabwe dollars, creating room for fraud through connivance and understatements.

In Chitungwiza, the audit observed that management irregularly awarded themselves car loans to the tune of $300 000, while in Chipinge salaries for ghost workers were deposited in some senior council officials’ accounts.

In Mutare, the town clerk usurped the powers of the housing department to allocate stands in circumstances that smacked of corruption.

This comes against the backdrop of deteriorating service delivery in most local authorities that are failing to provide basic services like garbage collection, provision of clean water and sanitation.

According to the audit report, management at Chitungwiza awarded themselves car loans amounting to about $300 000 without any supporting documents like application forms and loan agreements.

Ms Chiri noted that management in the town granted themselves loans without formalising them, a situation that she said raised the risk of loss in the event of disputes, and a recipe for fraud.

“Council’s management were granted car loans totalling $284 000 at five percent interest per annum repayable over three years. However, these loans were not supported by loan application forms and loan agreements, but were simply given following a council resolution,” read the report.

Ms Chiri noted that the municipality had long-standing bank reconciling items.

“Some of the amounts were deposited but did not reflect in the account and some amounts were withdrawn,” she said.

The audit showed that over $1 million was withdrawn at different intervals, but no supporting documents were produced to show the purpose for which the money was withdrawn or transferred.

“The Treasurer’s department failed to justify the validity or occurrence of such transactions and they were not traceable to the cash book,” read the report.

With respect to Mutare City Council, the audit report showed that the town clerk, whose name was not given, usurped the role of the housing department to administer commercial, institutional and industrial stands.

The audit could not authenticate the basis used to select beneficiaries since there was no waiting list maintained by the local authority.

“There is potential risk of corruption in the disposal of stands when there is no clear basis of allocation and the checking of irregularities in stands sales is highly compromised when this mandate is maintained in the hands of one person,” read the report.

In his response, the town clerk said conferring the role to the housing department would result in work overload and a further downfall as the department was already experiencing problems in administering stands.

“As the town clerk, I will appoint a more senior council official who will be responsible for the sale of these stands,” said the unnamed town clerk.

On Chipinge town council, the audit unearthed ghost workers where 13 people were on the payroll whose existence could not be validated through personal files or letters of appointment.

“Salaries for these people were collected by members of management rather than credited to bank accounts as other employees,” read the report.
All the employees had the designation of gardeners. Herald