A recent Auditor General’s report has revealed that senior officials at the Epworth Local Board allegedly misappropriated nearly US$100,000 earmarked for community development, using the funds to buy luxury vehicles for personal gain.
The report indicates that the Board’s financial statements for the year ended 31 December 2022 do not provide a true and fair view of its financial position, performance, or cash flows, as they were not prepared in accordance with International Financial Reporting Standards (IFRSs).
One key concern highlighted by the Auditor General was the improper valuation of property, plant, and equipment. The Board initially valued assets in US dollars before converting them to Zimbabwean dollars using the interbank rate at year-end. According to the report, this method failed to comply with IFRS 13 on Fair Value Measurement, as it did not reflect assumptions that market participants would use when valuing similar assets in local currency.
When approached for comment, Epworth Board Director Dr. Wilton Mhanda dismissed the allegations. “This is false. We did not engage in such activities at the Local Board,” he said.
However, some implicated officials admitted receiving the funds, claiming they had “approval” for their use. Observers have questioned this explanation, noting that the law clearly prohibits the use of the Estate Fund for personal purchases. While the officials pledged to repay the money, this has not yet been done, raising concerns over a culture of impunity in local governance.
The report also pointed out irregularities in foreign currency handling. Transactions were recorded in foreign currency and only converted to Zimbabwean dollars at year-end, rather than at the transaction date, as required by IAS 21 – The Effects of Changes in Foreign Exchange Rates.
The Auditor General warned that such practices compromise transparency and accountability, undermining trust in local authorities responsible for managing public resources.
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SOURCE – Bustop tv
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