Gweru- Gweru City Council is under fire for failing to account for its shareholding in Gweru City Parking Management Company joint venture,Express Mail Zim can report.
This was revealed in the latest Auditor General (AG)report released by the acting AG Rheah Kujinga.
The report states that the council entered a joint venture agreement (JV) in 2021 but were at pains to account for their shareholding which is a contravention of International Public Sector Accounting Standard(IPSAS).
“One of the findings was the Council’s failure to account for its share in Gweru City Parking Management Company (Private) Limited, a joint venture established in 2021. This omission contravenes the International Public Sector Accounting Standard (IPSAS) 36, which requires entities to use the equity method to report their interests in joint ventures.
As a result the Council’s financial statements did not reflect its share of the joint venture’s financial performance and position leading to a misstatement,” read part of the report.
Council attributed this oversight to the absence of a corresponding ledger and committed to rectifying the issue in the 2024 financial statements by the end of 2025.
The report further questions the integrity of the municipality’s financial statements.
“The audit report, covering key areas of financial reporting, asset management and internal controls points to significant deviations from international accounting standards.
“The audit also highlighted that Council had not revalued its property,
plant, and equipment since 2010 which is a violation of IPSAS 17 which mandates regular revaluation to ensure fair value reporting,” read the report.
The infrastructure assets including road networks, sewer systems, and bridges remain unvalued and unrecorded.
This has resulted in substantial understatements in the Council’s asset base and hinders long-term financial planning.
In response, the Council cited resource constraints but pledged to implement a policy for regular revaluations and to prioritize the exercise when resources permit.
