Harare City Council Fails To Account For ZiG691 Billion In Salaries

Harare City Council failed to account for ZiG691.29 billion in salary payments, according to Auditor-General Vimbai Chikwenhere.

In her 2025 audit report tabled in Parliament by Finance, Economic Development and Investment Promotion Minister Mthuli Ncube last week, Chikwenhere said the council could not produce payroll records to support ZiG53.48 billion paid in 2022.

“The council recognised employment costs amounting to ZiG53,48 billion which were not supported by underlying payroll records,” she said.

“I was unable to obtain sufficient and appropriate audit evidence to confirm the accuracy and completeness of employee costs and employee obligations recognised in the financial statements.”

Chikwenhere said she again failed to obtain the requisite supporting documents from the local authority for ZiG637,81 billion in 2023.

She said she could not verify the accuracy of the employee costs and obligations in the council’s financial statements, which resulted in an adverse opinion for both years – the most severe audit finding, meaning the accounts are materially misstated and do not reflect the council’s true financial position.

The Auditor-General said the failure to maintain proper books of account is contrary to the Urban Councils Act.

For 2023, council management acknowledged the findings, blaming system integration limitations, manual payroll reconciliation processes and challenges in calculating employee obligations.

Chikwenhere added that the council had failed to address 23 of the 25 findings she raised in her 2024 report, including failure to revalue assets, lack of supporting documents for revenue and payables, and failure to account for foreign exchange gains and losses.

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