By Advent Shoko
The City of Harare has dismissed widespread claims that it failed to account for ZWL691 billion in staff salaries, saying the Auditor General’s report did not conclude that the money was stolen, missing or misappropriated.
In a statement issued on Thursday, Acting Town Clerk Warren Chiwawa said social media reports had misrepresented the findings, creating the false impression that council had lost billions of dollars.
Instead, he said the audit highlighted weaknesses in how payroll information was transferred between the city’s financial systems during the 2022 and 2023 financial years.
“The Auditor General did not conclude that staff salary funds were missing, misappropriated or unaccounted for,” Chiwawa said.
ZWL, Not ZiG
The city also corrected claims that the amount mentioned in the audit report was denominated in Zimbabwe Gold (ZiG).
According to council, the audit covered a period before the introduction of ZiG, when Zimbabwe was still using the Zimbabwe dollar (ZWL) under severe hyperinflation.
Chiwawa said the figures appearing in the audited financial statements had been adjusted for inflation in line with International Public Sector Accounting Standards (IPSAS) and should not be mistaken for the actual cash paid to employees.
“The figures presented in the audited financial statements include mandatory inflation adjustments and should not be interpreted as the actual cash amounts paid in salaries,” he said.
Manual Payroll System Triggered Audit Concern
Council explained that, during the period under review, its payroll system operated separately from its main Enterprise Resource Planning (ERP) financial system.
Payroll information had to be transferred manually into the general ledger through journal entries, a process the Auditor General identified as a control weakness because it increases the risk of errors and makes verification more difficult.
Rather than alleging financial misconduct, the Auditor General recommended that Harare automate payroll integration to strengthen financial controls and improve audit efficiency.
The city said implementation of those recommendations is already underway.
An integrated ERP system is being rolled out, allowing payroll transactions to automatically update financial records while introducing electronic leave management to replace paper-based processes.
“Once fully implemented, payroll transactions will automatically update the general ledger, significantly reducing manual intervention and strengthening financial controls,” Chiwawa said.
Fresh Scrutiny on Harare’s Financial Management
The clarification comes at a time when Harare City Council continues to face growing public scrutiny over its financial management and service delivery.
Residents have repeatedly criticised the local authority over unreliable water supplies, burst sewer pipes, pothole-ridden roads, uncollected refuse and ageing infrastructure despite paying rates and service charges.
Successive Auditor General’s reports have also flagged governance weaknesses within the municipality, prompting calls for greater transparency and accountability.
Over the years, the central government has intervened through various programmes aimed at restoring essential services, particularly water infrastructure, while encouraging reforms within the city’s administration.
Morton Jaffray Rehabilitation Offers Hope
Despite the challenges, the city is currently undertaking one of its biggest water infrastructure rehabilitation programmes in years at Morton Jaffray Waterworks.
Working with Helcraw Water, the municipality has already sealed treated water leakages that were wasting around five megalitres of water per day.
New equipment, including a German-made industrial air compressor and four high-capacity pumps manufactured in China, is also being installed to modernise the ageing plant.
At the same time, six filter beds are being rehabilitated, while new pumping systems with a combined design capacity of 227 megalitres per day are expected to support increased water production.
Once completed, the upgrades are projected to unlock more than 75 megalitres of additional treated water daily, offering hope of improved water supplies to thousands of households that have endured years of intermittent service.
Council Appeals for Accurate Reporting
Harare City Council said the Auditor General’s report itself acknowledges the corrective measures being implemented and reflects the municipality’s commitment to improving financial governance.
Chiwawa urged journalists, residents and civil society organisations to seek clarification from council before drawing conclusions from audit reports.
“The City of Harare remains committed to sound financial management, transparency and continuous improvement in the delivery of public services,” he said.
While the city’s explanation may address misconceptions surrounding the payroll audit, Harare’s bigger challenge remains rebuilding public confidence through visible improvements in service delivery.
For many residents, cleaner streets, reliable water supplies, functioning sewer systems and better roads will ultimately be the strongest measure of whether the promised reforms are translating into meaningful change.
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