EnviroPress Reporter
The recently released Report of the Auditor-General for the financial year ended December 31, 2024, has shed light on significant financial irregularities and service delivery shortcomings within Masvingo City Council and Masvingo Rural District Council, the two key local authorities in Masvingo Province.
Released on 25 June 2025, the audit report gives both councils unqualified audit opinions, signaling gaps in their adherence to financial reporting standards and operational effectiveness.
Masvingo City Council
Masvingo City Council’s audit opinion was qualified due to several critical issues. The council was found to be non-compliant with International Public Sector Accounting Standards (IPSAS 47) regarding revenue recognition, as it recorded ZWL$1.17 billion in business license revenue on a cash basis instead of the required accruals basis. This accounting discrepancy could significantly misrepresent the council’s actual financial position.
Furthermore, the report highlighted concerns over procurement processes. An ambulance purchased in August 2022 for US$63 891 had still not been delivered by the time of the audit in 2025, violating contractual terms and raising fears of financial loss and compromised emergency services. Management acknowledged this issue and committed to pursuing the delivery.
The council also incurred ZWL$15.8 million in interest due to its failure to remit statutory deductions such as PAYE, NSSA, and Local Authorities Pension Fund contributions. This non-compliance exposes the council to further financial penalties, although management has initiated payment plans with regulators.
Finally, Masvingo City Council was criticized for not valuing and recognizing critical infrastructure assets like roads, sewer systems, water pipes, and streetlights in its financial statements, a breach of IPSAS 17. The absence of impairment assessments for these assets also led to misstated financial records. The council is reportedly in the process of tendering for valuation services to address this.
Masvingo Rural District Council
Masvingo Rural District Council’s audit also resulted in a qualified opinion, stemming from issues largely mirroring those of its urban counterpart. The council’s revenue collection practices were flagged, particularly concerning mining claims, where only 35 out of 234 operators were billed for development levy, contravening IPSAS 23. This oversight led to substantial underreporting of revenue.
Similar to the City Council, the Rural District Council failed to maintain a comprehensive database of operating businesses and recognized business license revenue on a cash basis, leading to inaccurate financial reporting. The council cited the frequent changes in business types as a challenge to maintaining such a database.
The audit also revealed that the council did not assign monetary values to received donations, preventing their proper recognition as revenue and assets in the financial statements.
A critical service delivery concern highlighted was the absence of a functional ambulance to serve the district’s 23 clinics, a direct violation of the Rural District Councils Act [Chapter 29:13]. This deficiency severely compromises emergency health services for the rural population. The council has indicated that a provision has been made in its 2024 budget to acquire a new ambulance.
The Auditor-General’s report underscores the pressing need for improved financial management, adherence to accounting standards, and enhanced service delivery across local authorities, urging both Masvingo City Council and Masvingo Rural District Council to implement robust measures to address these identified deficiencies.
