The local authority has been faced with a myriad challenges ranging from mal-administration to corruption, which Nhamarare acknowledged. An audit report in possession of The Zimbabwean indicate that the local authority spent about $2,4 million in allowances designed to hide earnings from the taxman in 2012.
It says 11 managers pocketed over $200,000 in non-taxed monthly allowances, which amounted to $2,4 million in 2012.
The Mayor, Tatenda Nhamarare, said council management had received training to familiarise them with the new system. “The local authority has adopted a new model where management will work with performance based contracts. The fate of city fathers will be governed by their performance in their respective offices,” he said. But it has not yet been decided when the new system will come into effect.
Last year, the council recorded a budget overrun of 63 percent, spending nearly $30 million against the projected $19 million while missing its revenue collection target, which Nhamarare blamed on overstaffing and debts.
The audit also unearthed that the local authority’s leases are in a shambles, with some leaseholders not paying their dues since 2009. It further cited a number of irregularities in the administration of council leases.
“A number of lease agreements have since expired, but the dealers are still operating…others have not been paying their dues since 2009, and the recoverability is doubtful,” stated the report.
The outstanding lease defaulters include Valley Bricks and Mutare Sports Club, which owe the local authority $84,315 and $20,707 respectively. This has deprived the cash-strapped council of the much needed revenue to improve its operations.
“This is also an indication of lax supervision of potential revenue generation. The absence of internal controls creates a high risk environment for fraudulent practices by council employees,” stated the audit. The audit also revealed that 32 percent of water meters readers in Mutare are no longer functional and the local authority has no mechanism to replace them.
City engineer Donald Nyatoti said this means that many people abuse their use of water because they know that the council is not billing them. He said the council was looking at either erecting new or prepaid meters.
“There are benefits for both the council and the consumers, who will be able to manage their water usage conveniently. Prepaid meters assist with managing cash flow,” he said, adding that the council is effectively billing a mere 47 percent of its water, which has resulted in significant loss of revenue.
Post published in: News