The Sunday News
Leonard Ncube Victoria Falls Reporter
HWANGE Rural District Council has suspended its treasurer on allegations of abusing funds running into thousands of dollars. Initial findings from an internal audit revealed that council treasurer Mr Mafa Ngwenya allegedly misappropriated close to $8 000 during the period between January 2014 and June this year as he would allegedly either under-bank or inflate tenders and convert money to his own use.
There are other amounts that have not been reconciled which are still being investigated and may unearth massive abuse of council funds involving a number of workers, an audit team led by Hwange District Administrator Mr Tapera Mugoriya said, in a report.
The Sunday News is in possession of the audit report which recommended that the council should take disciplinary action against Mr Ngwenya and his deputy Mr Lawrence Ncube.
Hwange Rural District Council chairperson Councillor Siphiwe Mafuwa confirmed Mr Ngwenya’s suspension but said she could not give details as it was an administrative issue.
“Yes it’s true that there is such a thing but that’s an administrative issue which can only be commented on by the chief executive officer. Why can’t you wait until investigations are complete?” she said.
The council’s chief executive officer, Mr Phindile Ncube, only said the matter was still being investigated.
Mr Ngwenya was suspended last week after the report was written on 17 July.
According to the audit report, the bulk of the abused funds were from sub offices in Kamativi, Dete and Lukosi main office.
The audit team also stated an attempt by Mr Ngwenya to stall investigations as he allegedly threatened subordinate staff.
“A total of $2 910 from Kamativi sub office and $4 659 at Dete sub office totalling $7 479 could not be accounted for by Mr Mafa Ngwenya the council treasurer while $324 could not be accounted for by Rachel Nyathi,” read part of the report.
Some funds were not banked while others were not accounted for.
On numerous occasions, the audit report said, Mr Ngwenya would allegedly either under-bank or understate council money and convert it to his own use.
It is alleged that money receipted in the subsidiary receipt books was not tallying with the corresponding receipts in the master receipt book, raising fears of “a possibility that another receipt book might be in use as different amounts were not properly recorded during the period April and May 2015 and Mr Ngwenya and his deputy Mr Lawrence Ncube should explain”.
The audit report stated that Mr Ngwenya was influencing subordinate staff to bank some money elsewhere and investigations on the particular issue are under way.
There are also some receipt books that were not availed to the audit team as some council officials hid information that could expose them, the audit committee alleges.
It is alleged in the report that Mr Ngwenya claimed he paid different suppliers who had been tendered by the local authority but there was no proof thereof hence the council owes a number of suppliers thousands of dollars for unpaid services.
Mr Ngwenya allegedly tried to cover up by forging documents.
“Despite the local authority’s resolution FC 38/11 that all revenue should be banked intact before use, the audit team established that all payment vouchers were not authorised by the CEO or recipients.”
“Our analysis revealed that the money was misappropriated by Mr Ngwenya. He attempted to acquit the money with fraudulent documents. Also noted was that there were no tendering papers for services done for the council,” read the report.
The audit team said some funds would take about 13 days to be banked which is against policy. The audit committee recommended that Mr Ngwenya account for the money and that disciplinary action be taken against him, which resulted in his suspension.
“In his statement Mr Ngwenya confirmed collecting $84 and $1 569 on different dates and said he used $84 for fuel and oils for council business and paid a further $680 for photocopying, ledger cards but had duplicate receipts that did not correspond with what the suppliers furnished us,” said the audit team.
“Some payments were made without being authorised while every employee can handle cash. There are also unconfirmed amounts given to some employees without signing anywhere.
“There are weaknesses in the internal controls in the finance department particularly in receipting and banking. Corrective disciplinary measures on the treasurer and any such other council employees should be taken as provided in the Public Finance Management Act.”
