Zimbabwe: Auditor General Flags U.S.$1.82 Million Waste On Abandoned Makuti Dry Port Project

The Auditor General has raised concerns over the loss of US$1.82 million in public funds after the proposed Makuti Dry Port Project was abandoned despite millions of dollars being spent on consultancy and project design services.

According to the latest Auditor General's report, the expenditure was incurred between 2022 and 2025 before the project's viability had been properly assessed through a feasibility study.

The report says the project's board resolved to discontinue the initiative on 17 March 2025 after determining that it was not economically viable, rendering the expenditure fruitless.

"The Makuti Dry Port Project incurred USD1.82 million from 2022 to 2025 related to consultancy and project design services without conducting a feasibility study prior to initiating the project. On 17 March 2025, the Board resolved to discontinue the project after it was assessed not to be viable," the Auditor General said.

The Auditor General said the failure to undertake a feasibility study before committing public resources contravened Section 44(1)(a)(iv) of the Public Finance Management Act [Chapter 22:19] which requires public entities to establish effective systems for evaluating major capital projects before implementation.

The report noted that proper project appraisal is a critical safeguard against wasteful expenditure and ensures public funds are invested in viable initiatives capable of delivering value for money.

By proceeding with consultancy and design work before assessing the project's viability, the entity exposed itself to avoidable financial losses when the project was eventually shelved.

The Auditor General classified the US$1.82 million spent on the project as unfruitful expenditure highlighting weaknesses in project planning and governance.

The findings add to growing concerns over the management of public resources and underscore the need for government institutions to comply with the Public Finance Management Act by conducting comprehensive feasibility studies before embarking on major infrastructure projects.

The report recommends that public entities strengthen project planning processes and ensure that economic, technical and financial viability assessments are completed before committing significant public funds to capital projects in order to minimise the risk of costly abandoned investments.

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