A DAMNING 2024 Auditor-General report has exposed severe financial mismanagement at Gweru City Council, including unreconciled bank variances totalling ZWL$4,9 billion, missing asset records and unauthorised journal entries, raising alarm over potential fraud and systemic governance failure.
Key findings in the report include ZWL$4,9 billion in unresolved variances between bank balances and financial statements, including ZWL$422,9 million (2022) and ZWL$93,4 million (2021).
According to the report, there were no monthly reconciliations performed, risking undetected irregular transactions.
“The council did not have adequate internal control measures such as input validation controls,” the report read.
“Financial statements may be materially misstated. Council should ensure all supporting documentation is safely kept for future reference.”
The report noted unauthorised journal entries — ZWL$44,2 million in 2024 and ZWL$699,1 million in 2021 due to lax controls.
“All journals should be duly authorised at an appropriate level,” the report read.
The report also revealed that there was no updated asset register since 2010, violating the Public Finance Management Act.
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Infrastructural assets such as roads, sewers and bridges were also excluded from financial records.
“I could not confirm the completeness and valuation of property, plant and equipment. This was contrary to the Public Finance Management Act [Chapter 22:19] section 49(1)(a), which requires council to keep full records of its financial affairs,” the Auditor-General said.
The AG noted that the local authority did not account for its share in the Gweru City Vehicle Parking Management Company in the financial statements in violation of international accounting standards.
The report states that council promised to correct the anomalies in future financial statements.
