The City of Harare has been operating without audited accounts since 2017. This lack of financial oversight has raised alarms about the potential misuse of ratepayers’ money, casting a long shadow over the city’s governance and its ability to deliver essential services.
Local Government Minister Winston Chitando disclosed this critical issue while explaining the government’s decision not to approve the council’s 2024 budget. The absence of audited financial statements since 2017 undermines the city’s fiscal management and accountability, hindering the government’s ability to oversee and support the city’s financial health. “The main reasons really are centered around the lack of audited accounts, whereby there have not been audited accounts for years from 2017,” Chitando stated during a media briefing with councillors at Town House. This lapse in financial governance has left the city’s budget and planning processes in limbo, with no clear roadmap to rectify the underlying issues that have led to this oversight failure.
The Auditor-General’s report for the financial year ending December 2022 painted a grim picture of the city’s financial management, indicating a system ripe for exploitation. The report highlighted significant irregularities and the potential for grand theft, exacerbating the city’s already critical service delivery crisis. In response to these glaring financial management issues, the Harare City Council took decisive action earlier this week, suspending 222 officials implicated in exploiting the system’s vulnerabilities to misappropriate billions from the city’s coffers. This mass suspension underscores the depth of the financial mismanagement crisis and the urgent need for systemic reforms.
The officials reportedly took advantage of the abandonment of the Enterprise Resource Planning (ERP) billing system, a critical tool for financial and resource management. Minister Chitando specifically pointed out the failure to maintain and effectively utilize the ERP system as a significant factor contributing to the city’s current financial predicament. In light of these challenges, Minister Chitando has outlined a clear ultimatum for the City of Harare: put its financial house in order by April 19. The city is expected to develop a comprehensive roadmap that addresses the audit backlog and outlines specific measures to prevent future financial mismanagement.
“We agreed as a way forward that the City of Harare will, by April 19, come up with a roadmap to ensure that it has accounts which can be approved by the ministry and also come up with a roadmap to address some of the major issues of concern to the government,” Chitando emphasized.
The ministry’s stance underscores the government’s commitment to restoring accountability and transparency within the City of Harare’s financial management processes. The successful implementation of a computerized ERP system is seen as a critical step toward achieving this goal, enabling the city to efficiently manage its resources and potentially secure funding for short, medium, and long-term investment programs.
