Rise in procurement issues as local authorities fl...

Rise in procurement issues as local authorities flout rules

Audrey Galawu

The number of reported procurement issues in local authorities has increased from 11 in 2021 to 41 in 2022, which according to the Office of the Auditor-General 2022 report is an indication of weakening procurement management systems and non-compliance with procurement laws and regulations by local authorities.

The 2022 Office Auditor-General report on LAs highlighted that weak procurement processes and procedures are contributing to inefficiencies in local authorities including poor revenue collection, poor management, poor debt recovery and poor management of assets.

In an analysis of the 2202 OAG report, Zimbabwe Coalition on Debt and Development said weak Public Financial Management systems are destroying the efficiency of Local Authorities and risks evaluations of resource allocation decisions made by public officials thereby reducing transparency and accountability.

ZIMCODD said Local Authorities are closer to ordinary citizens compared to the central government and as such, they are expected to always have increased operational efficiency to ensure the delivery of quality and affordable social services.

The organisation noted that almost all local authorities are not implementing the IPSAS standards and the Ministry of Local government and Public Works must avail enough financial resources for capacitation.

“Many of the audited LAs are operating without key policies such as housing and human resources policies, they are grossly violating public procurement laws and regulations, lack proper segregation of duties, and have weak internal controls.

“Further, the Auditor-General established that all the LAs who submitted their financial accounts for auditing failed to comply with the requirements, of International Public Sector Accounting Standards. Failure to religiously follow IPSAS standards has weakened PFM by compromising the general quality of financial reporting by public sector entities.

“Furthermore, residents are denied full enjoyment of social rights due to high prevalence of weak revenue collection and debt recovery strategies in many Las,” reads the analysis.

According to the OAG report, many Local Authorities are failing to submit their financial reports for thorough audit.

The latest report shows that a total of 109 financial statements were submitted for audit as of May 31, 2023.

The report stated that the failure to submit financials on time by local authorities suggests cover-ups of gross incompetency and corruption by senior management.

ZIMCODD has urged capacitation of local authorities for the adoption of IPSAS standards to help curb corruption and embezzlement of public funds.