Local councils that fail to update their financial reports could lose future government funding as the state is tightening accounting rules to improve transparency and turn local governments into drivers of economic growth.
Local Government permanent secretary Tafadzwa Muguti said councils would have to account for previous allocations before being considered for further funding.
“Account for what you received before you are approved to spend the next allocation,” Muguti told council executives.
He said some local authorities were operating with financial statements that were between three and five years out of date, a situation the Ministry intends to address through tighter reporting requirements.
Under the new system, councils will be expected to meet monthly, quarterly and half-year reporting deadlines.
Muguti said the councils financial statements will also have to be published in newspapers.
The reforms form part of a wider effort to change the way local authorities are assessed, with the government seeking to move the focus beyond revenue collection towards investment, employment creation and economic activity.
Muguti said councils controlled significant assets, including land and infrastructure, and should use these resources to support economic growth.
“We should therefore begin to review every local authority as an economic development platform,” he said.
The Ministry also plans to standardise council administrative structures into four tiers, including the creation of an economic development department.
Councils will further be expected to use standardised digital systems.
Muguti also took aim at land developers accused of selling residential stands without providing supporting infrastructure.
He said developers were expected to provide basic services such as roads, sewerage and water and warned that companies failing to meet their obligations could have their contracts cancelled and face criminal prosecution.
The government has identified about 326 000 illegal homes in Harare, he said.
“They sold the land, pocketed the money and left. It is time to pay back the government,” Muguti said.
He also tied stronger revenue collection by councils to the funding available under the devolution programme.
The Constitution provides for at least five percent of national revenue to be allocated to provincial and local authorities.
“If you want a bigger share of devolution funds, start collecting your share,” he said.
Meanwhile, only 15 of the country’s 92 councils had submitted strategies required as part of the ministry’s clean-up exercise by the set deadline.
The remaining councils have been given until tomorrow to submit their plans.
Muguti said councils’ strategic plans would also have to be aligned with the National Development Strategy and the country’s Vision 2030 agenda.
“We need to move from producing reports to producing results,” he said.