Brenna Matendere
Harare — The Kwekwe City Council paid more than US$63,00 for an ambulance in 2022 but, three years later, the vehicle has not been delivered, according to a new report by the Office of the Auditor General (OAG).
The US$63, 891 payment was made on 17 August 2022 and, according to the purchase contract, the ambulance was supposed to be delivered within 14 days.
“The council procured an ambulance on August 17, 2022, at a total cost of US$ 63 891. However, the ambulance was yet to be delivered at the time of audit in 2025.
“This was contrary to the contract terms which required the delivery of the ambulance within two (2) weeks from the date of payment,” says the report.
According to the OAG, this is likely to cause financial loss and compromise service delivery.
“Management should follow up with the supplier and ensure delivery of the procured goods,” urged the acting auditor general, Rheah Kujinga, in the report.
Kwekwe, like other local authorities, procures and manages ambulances as part of its mandate to deliver health services to residents.
The Kwekwe municipality management did not give a reason for the delay.
However, in its response to the audit findings, it conceded that the ambulance had not been delivered and promised to rectify the error, without specifying how.
On another note, the OAG report indicates that the Kwekwe council did not include assets relating to roads, sewerage, water distribution and street lights in its financials as required.
This, says the report, distorted the financial statements.
“Had the council recognised infrastructure assets, the financial statements would have been materially different,” noted the audit.
Council management said it had already advertised for the valuation of its assets
The OAG also flagged the council for not remitting statutory deductions from employee wages, among them pay-as-you-earn to the Zimbabwe Revenue Authority (ZIMRA), social security to the National Social Security Authority (NSSA) and payments to the Local Authorities Pension Fund.
The council was levied interest amounting to ZWL$15.8 million (US$530,000) for non-compliance in remitting the statutory deductions.
In its management response, the local authority said it had established payment plans with key statutory bodies such as ZIMRA and NSSA so as to avoid garnishee orders.
“While these arrangements (remittances) have been honoured consistently within the council’s capacity, it is important to note that, despite repeated engagements, the regulatory authorities have maintained that interest charges on outstanding balances cannot be waived even when payment plans are in place.
“Management remains committed to fulfilling its obligations under the current agreements and, in light of the above recommendations, they (sic) will continue to advocate for more flexible terms where possible,” reads the management report.