Kwekwe City Council has come under scrutiny after an audit revealed serious weaknesses in the management of its residential stand inventory, with dozens of stands that had already been sold or leased still recorded as available for sale.
According to the Auditor-General’s report on the council’s 2023 financial statements, 30 stands that had been sold and 28 stands under lease continued to appear in the council’s inventory as available for sale because the records had not been updated.
The audit noted that the failure to maintain accurate inventory records was contrary to the Public Finance Management Act, which requires public entities to safeguard public assets and records.
“Fraud and error may go undetected,” the Auditor-General warned, highlighting the risks associated with inaccurate stand records.
The report further stated that the weaknesses affected the auditor’s ability to verify the existence and valuation of inventory worth ZWL225.1 billion reported in the financial statements. As a result, concerns were raised about the reliability of the council’s reported inventory balances.
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The stand inventory issue formed part of a broader adverse audit opinion issued against Kwekwe City Council for the year ended December 31, 2023.
Responding to the findings, council management acknowledged the shortcomings and said corrective measures were already underway.
“Physical verification and reconciliation of stands available for sale in line with IPSAS 12 have commenced and will be conducted on an annual basis going forward during the year-end stocktake,” council management said in its response contained in the audit report.
Management added that efforts were being made to ensure that all transactions involving stands were captured promptly by the relevant departments to improve the accuracy and completeness of records.
The audit findings raise concerns about accountability and transparency in the administration of council land, an area that has historically attracted public interest because of its importance to housing development and local revenue generation.
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