HCC 'loots' donations: Auditor-General

HARARE - Harare City Council (HCC) is failing to account for more than $2 million worth of cash and goods in donations that it received in 2012, an audit report by the Auditor General Mildred Chiri reveals.

In the audit report presented to Parliament by Chiri, between January and December 2012, council received cash and materials for different purposes which were not accounted for.

Her report shows that 10 tonnes of maize-meal and a water bowser were unaccounted for, while cash worth more than $1,5 million is not accounted for.

Other donated items not accounted for and could have been misappropriated include books, clothing, information communication technology equipment and water pipes.

The report also indicates that some goods whose costs have not yet been ascertained were not accounted for.

Chiri’s report on HCC highlights that the donations were also not included in council’s financial statements for the same year.

“According to IPSAS 23 paragraph 95; “Gifts and donations (other than services in-kind) are recognised as assets and revenue when it is probable that the future economic benefits or service potential will flow to the entity and the fair value of the assets can be measured reliably,” read part of the report.

HCC is no stranger to controversies around misappropriation of funds, recently it came under fire for buying top-of-the-range vehicles using money intended to refurbish Morton Jaffray waterworks.

The city also failed to account for $3 million meant for the project after contractors and council books did not tally.

Money from the $144 million China Exim Bank loan facility was used by management to buy personal cars under the guise of project vehicles.

In 2014, a probe team led by councillor Stewart Mutizwa was assigned to investigate the loan facility and found out that the project did not have any bank accounts.

The probe team also noted that the $28 million labour cost was equivalent to 38 percent of the value of fitted equipment for the project.

Other issues of overpricing items and duplication were unearthed during the investigations.

Comments (1)

the findings of our esteemed CAG are good and quite expected but i lament ova the timeliness of the reports. she's talking about 2012 and today is 2016!!! the quality of timeliness is an important factor in reliability & relevence of these reports as far as corrective action & remedies is concerned. blame will be shifted to the gnu and ex-officials and the issues will die a natural death yet the heamorrhage continues unabated & without restraint. there seem to be a vicious dent in the integrity & objectivity of the OCAG.

SaManyika Chaiye - 27 June 2016

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