A recent report by a Parliamentary Portfolio Committee has raised concern over financial mismanagement at local authorities saying this has undermined accountability at councils.
The report, tabled by the Public Accounts Committee led by Charlton Hwende, highlighted several challenges including lack of permanent accounting officers and finance directors.
The report said the critical positions were occupied by persons in an acting capacity, which in turn undermined accountability and responsibility in the preparation of financial statements and operations of the local authorities.
“This lack of stability in leadership could also lead to inconsistency in decision-making and policy implementation within the local authorities. Failure to do so may result in further challenges in maintaining councils' financial integrity and reputation.
“Staff shortages and high labour turnover in the accounts department are significant contributors to the delays in preparing financial accounts, which in turn delay meeting the statutory deadlines,” the report read.
The lawmakers called on the ministry of Local Government and Public Work to fill key positions in public finance management by December 31 this year.
The report also notes that staff shortages and high labour turnover in the accounts department have contributed to delays in preparing financial accounts resulting in local authorities missing statutory deadlines.
It further revealed that some local authorities, such as Gweru City Council, have experienced delays in appointing auditors and attributed this to external auditors' failure to entered into a contract with the Auditor-General.
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The report also highlighted the use of outdated accounting systems by some local authorities.
“Gweru City Council’s acting town clerk submitted that the local authority uses Programme Municipality (PROMUN), a government contract that was given to the local authorities, as its accounting system, which was supplied by a South African vendor.
“Given the volume of transactions that Gweru City Council handles, the PROMUN accounting system is too small for its stature. Relying on manual processes for bank reconciliation statements is not only time-consuming but also prone to errors,” it said.
The committee urged Gweru City Council to invest in tried-and-tested accounting systems that match the demands of the local authority by December 31, 2024 to enhance efficiency and accuracy in its financial management and improve the timeliness of financial reporting.
“The local authorities and the Ministry of Local Government and Public Works must make sure that the committee's recommendations are implemented and addressed the problem of non-compliance with the provisions of the PFMA Act.
“In the future, the Ministry of Local Government must not approve budgets for local authorities lagging in submitting financial statements to the Auditor-General,” the report said.
