By Leonard Mhlanga

Chipinge, Manicaland – A scathing report by the Auditor General’s office has raised serious concerns over the financial management practices of Chipinge Rural District Council. The report, released recently, highlights a plethora of financial irregularities and poor governance practices by the council.

“The council has basically incurred a financial loss of US$103,308, and this is likely going to hinder its ability to perform essential services such as construction and maintenance projects,” said Allan Murozvi, a local governance expert.

The report notes that the council’s financial statements for the year ending December 31, 2022, were marred by material misstatements, blatant disregard for international public sector financial standards, and poor corporate governance practices.

“The council has failed to revalue its assets in accordance with International Public Sector Accounting Standards (IPSAS 17),” said Claris Madhuku, a Director with PYCD, a community-based organization in Chipinge. “By not revaluing its assets, Chipinge Rural District Council is presenting an inaccurate picture of its financial position. This has the potential to mislead stakeholders and decision-makers and lead to poor resource allocation, inadequate budgeting, and ineffective asset management.”

The report also highlights the council’s payment of US$103,308 to a local company without receiving the goods, exposing them to procurement fraud risk. The council paid for a backhoe excavator and front-end loader on June 27, 2019, but they had not been delivered by the time of the audit.

“The report is a wake-up call for Chipinge Rural District Council and a reminder that public officials will be held accountable for their actions,” said a local resident, who wished to remain anonymous. “As the majority of us struggle with economic challenges, it is important that public resources are managed efficiently and effectively.”

However, the council was commended for having a complete asset register and a recognized inventory.

The report’s findings have sparked concerns among residents and stakeholders, who are calling for greater transparency and accountability in the management of public funds.