Harare Council Ignored 27 of 28 Audit Red Flags, Auditor General’s Report Reveals


Harare Correspondent

Harare City Council has been accused of “gross negligence” after failing to address 27 out of 28 critical audit findings from the Auditor General’s 2023 annual report, sparking outrage among residents and watchdogs who allege a deepening culture of impunity and financial mismanagement.

The damning report, extracts of which were shared by the Harare Residents’ Trust in the public interest, reveals that the council implemented just one recommendation—preparing inflation-adjusted financial statements—while ignoring systemic flaws in record-keeping, financial reporting, and compliance with laws designed to protect public funds.

“The Council did not make progress in addressing the findings that I raised in my 2023 annual report,” the Auditor General stated bluntly in the 2025 report.

Key Unresolved Issues

The audit highlighted severe lapses, including:

· Missing documentation for land sales and dividend income
· Failure to maintain proper records for leave pay, property, equipment, and inventories
· No consolidation of subsidiaries or accounting for investments in associates
· Outstanding creditor list for ZWL$1.88 billion not provided
· No related party disclosures or records for employee benefit obligations
· Non-compliance with the Public Finance Management Act
· No disaster recovery system or business continuity plan

Residents React

The Harare Residents Association (HRA) condemned the council’s inaction, noting that it had “made virtually no progress in addressing longstanding governance and financial irregularities”.

This failure, residents say, has directly contributed to deteriorating service delivery in the capital, where corruption allegations and infrastructure decay have become commonplace.

Only Victory: Inflation-Adjusted Statements

The sole finding addressed was the preparation of financial statements adjusted for hyperinflation, in line with International Financial Reporting Standards. However, this minor compliance step was overshadowed by the overwhelming number of unaddressed red flags.

Systemic Weaknesses

The report exposed fundamental weaknesses in the council’s financial management systems. The local authority continues to rely on an Excel-based asset register for property, plant, and equipment—a tool insufficient for tracking and managing public assets effectively.

Additionally, the council’s financial statements were not supported by underlying accounting records, and monthly bank reconciliations were not performed or reviewed.

Implications and Next Steps

The findings are expected to fuel mounting calls for urgent reforms at the City of Harare, which has been plagued by years of corruption allegations and financial mismanagement.

As residents grapple with crumbling infrastructure and unreliable services, the council’s apparent indifference to accountability has raised questions about its commitment to governance and transparency.

Zim GBC News: Global News from an African Perspective©2025

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