Auditor-General finds Harare City Council did not consolidate its subsidiaries and could not reconcile billions in payables
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Zimbabwe's Auditor-General found that Harare City Council did not consolidate its subsidiaries, including Harare Sunshine Holdings, Rufaro Marketing and Harare Quarry, contrary to IPSAS 35, and did not disclose the carrying amounts of its investments in them (IPSAS 38). In a separate finding in the 2022 audit, the creditors control account showed ZWL298.69 billion against ZWL56.58 billion disclosed in the financial statements, an unresolved variance of ZWL242.11 billion, and the Auditor-General said she could not satisfy herself as to the completeness and validity of trade and other payables. The council responded that its reporting framework did not fully support the segment information required under IPSAS 18, that it had set up a Business Development Unit to coordinate its business units, and that it was reviewing its investments for classification and disclosure and strengthening processes to prepare consolidated information.
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