Zimbabwe: Poor Accounting Systems Cost Marondera

13 August 2024

Andrew Muvishi — Marondera Municipality is struggling to settle the ZiG8,2 million and US$420 000 it owes priority creditors, at a time when one of its cash cows, the parking unit that can go as far as clamping and towing in its enforcement, has been red-flagged for operating without parking tickets or receipt books.

The municipality owes the Zimbabwe National Water Authority, the National Social Security Authority, the Zimbabwe Electricity Transmission and Distribution Company and banks.

Negotiations with those creditors have started, to avoid garnishes, the minutes from a full council meeting held recently show.

"A total of ZiG8 209 339,78 and US$420 638,54 was needed to pay priority creditors and constant negotiations are still ongoing to protect council from garnishes," read part of the minutes.

The debts come at a time when some departments that could easily be supplying some of the revenue the municipality needs are failing to generate meaningful revenue due to a flawed management and accounting system.

An audit report presented during the meeting flagged the parking department as having performed poorly between November 2022 and June 2023.

The internal audit noted that accounting records in the parking section were not properly maintained and as such, there was a lack of supporting documents for parking fees.

During the period in question, the parking section did not have parking tickets or receipt books while cashbooks were improperly recorded.

In its defence, the parking and clamping section said it faced various challenges such as a shortage of stationery, resulting in the use of a manual system.

The internal audit recommended the setting up and enforcement of robust accounting policies and procedures that ensure compliance with the laws and regulations, provision of training and resources to the parking clerks and proper documentation procedures.

Serious malpractices that have fleeced councils for long periods have been noted in most opposition-run councils.

Service delivery is now at its lowest, resulting in preventable diseases such as cholera, typhoid and dysentery, among others.

This has prompted Government intervention to save the situation.

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