AN analysis of Auditor-General reports, spanning from 2020 to 2023, has revealed a critical failure among Zimbabwean local authorities to establish fundamental risk management policies, raising accountability fears.
Risk management policies are crafted to guide institutions on how they can manage economic pitfalls that possibly lead to financial losses.
Hence, the failure by local authorities to craft proper risk management policies has led to losses running into millions of dollars, through overpayments, mis-statements and non-delivery of paid for goods.
Findings from the 2023 AG report flagged eight local authorities for not having risk management policies, which has lead to potential revenue loss.
Mudzi Rural District Council and Zibagwe Rural District Council have been repeatedly flagged in both the 2020 and 2023 reports, demonstrating a prolonged inability to implement these vital guidelines.
The flaggings by the AG are also worrisome, with data indicating an increase in governance issues, which have been crippling local authorities and raising concerns about accountability.
