1. The City of Harare has noted with concern recent reports circulating on social media and other media platforms alleging that Council failed to account for ZWL691 billion in staff salaries during the 2022 and 2023 financial years. As a public institution, we recognise our responsibility to provide accurate information and maintain the confidence of our residents, ratepayers and stakeholders. We therefore wish to clarify the issues raised and place the Auditor General's findings in their proper context. 2. Some reports have incorrectly stated that the amount cited 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 Zimbabwean Dollars (ZWL). Zimbabwe was operating in a hyperinflationary environment during the period under review. In line with International Public Sector Accounting 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 as the actual cash amounts paid in salaries. 3. It is important to clarify that the Auditor General did not conclude that staff salary funds were missing, misappropriated or unaccounted for. The issue raised relates to the manner in which payroll information was processed and transferred between Council's financial systems. During the 2022 and 2023 financial years, the City operated a standalone payroll system that was not fully integrated with the main Enterprise Resource Planning (ERP) financial system. Payroll transactions were therefore transferred into the general ledger through manual journal entries. 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 between payroll and the financial reporting system to strengthen internal controls and improve audit efficiency. 4. The City of Harare has already begun implementing measures to address these recommendations. Anintegrated 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 new system also includes an electronic leave management module, replacing manual paper-based processes with automated workflows that improve accountability and operational efficiency. 5. The Auditor General's report also records Council's responses and the corrective actions being implemented, demonstrating our commitment to addressing the recommendations raised during the audit. 6. The City of Harare remains committed to sound financial management, transparency and continuous improvement in the delivery of public services. 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. Advocate Warren S. Chiwawa Acting Town Clerk 23/07/26
