By Archford Chirimudombo
Harare, (New Ziana) – Harare municipal authorities have dismissed social media claims alleging that it failed to account for ZWL691 billion in employee salaries during the 2022 and 2023 financial years, saying the allegations misrepresent the findings of the Auditor General.
In a statement, Acting Town Clerk Warren Chiwawa said the Council had a duty to provide accurate information to residents, ratepayers and other stakeholders, adding that it was necessary to clarify the issues raised and provide the correct context of the Auditor General’s audit observations.
“Some reports have incorrectly stated that the amount stated in the Auditor General’s report was denominated in Zimbabwe Gold (ZiG). This is incorrect. The audit relates to the 2022 and 2023 financial years, before the introduction of the ZiG currency. The figures referred to in the report were recorded in Zimbabwe Dollars (ZWL).
“Zimbabwe was operating in a hyperinflationary environment during the period under review. In line with International Public Sector Standards (IPSAS), public sector entities were required to restate financial statements to reflect the effects of inflation. As a result, the figures presented in the audited financial statements include mandatory inflation adjustments and should not be interpreted in the actual cash amounts paid in salaries,” Chiwawa said.
He said the Auditor General’s report did not conclude that salary funds had been lost, misappropriated or could not be accounted for. Instead, the audit highlighted weaknesses in the way payroll information was processed and transferred between the Council’s payroll and financial management systems.
According to Chiwawa, the City used a standalone payroll system during the 2022 and 2023 financial years that was not fully integrated with its Enterprise Resource Planning (ERP) platform. As a result, payroll transactions had to be transferred into the general ledger through manual journal entries, a process identified by the Auditor General as a control weakness.
“The Auditor General correctly identified this as a control weakness because manual processes increase the risk of errors and make verification more difficult. The recommendation was for Council to automate the integration of payroll and the financial reporting system to strengthen internal controls and improve audit efficiency.
“The City of Harare has already begun implementing measures to address these recommendations. An integrated ERP system is being rolled out, incorporating payroll directly into the financial management platform. Once fully implemented, payroll transactions will automatically update the general ledger, significantly reducing manual intervention and strengthening financial controls. The system also includes an electronic leave management module, replacing manual paper-based processes with automated workflows that improve accountability and operational efficiency,” he said.
Chiwawa said the Auditor General’s report also acknowledged the Council’s responses and the corrective measures already underway, reflecting its commitment to implementing the audit recommendations and strengthening governance systems.
He reaffirmed the City’s commitment to sound financial management, transparency and continuous improvement in service delivery, while encouraging the public to seek clarification directly from the Council on issues relating to municipal operations and audit findings.
“We value constructive public scrutiny and encourage members of the media, residents, civil society organisations and all stakeholders to seek clarification from Council whenever questions arise regarding municipal operations or audit,” he added.
New Ziana
