Poor management, unauthorised cattle sales bleed council — audit

POOR management at Harare City Council farms and unauthorised cattle sales are bleeding the local authority, amid ridiculous claims that an average of 36 cattle died monthly in 2017 under unclear circumstances.

A total of 433 cattle, according to a recent audit report by the Auditor-General, died in 2017, while management at the farms failed to account for almost 200 others believed to have been lost in dirty transactions involving Sunshine Holdings.

Auditors raised issues regarding the third party farming deal before ordering an investigation.

“According to council resolution, City of Harare and Sunshine Holdings entered a fattening arrangement by which Sunshine Holdings would bring their cattle into City of Harare farms for fattening and they would collect them after the fattening and sell them in their butcheries. I noted that Sunshine Holdings brought 249 cattle for fattening, but subsequently collected 401 cattle. There was no evidence to support that Sunshine Holdings had been authorised to collect the extra 152 cattle,” reads the report.

The case was further compounded by the fact that inter-company and related party transactions were secretive. Council, at the time of the books were audited, had no documented procedure to account for cattle births and deaths, creating room for theft through falsification of records. “Council had no documented procedures to prescribe the action to be taken when cattle births and death occur. I also noted that 433 cattle deaths were recorded during the year under review, which translated to 36 cattle a month,” reads the report.

The auditors said there was a possibility that some cattle could have been stolen through falsification of records. It was also noted that the shambolic system compromised accountability of the livestock. The auditors urged council to put its house in order in that respect.

“Council should put in place documented processes and procedures that should be followed when cattle births and deaths occur,” reads the report. During the period in question, council farms sold 40 beasts valued at $24 808 to Sunshine Holdings without authorisation.

“Council farms sold 40 beasts valued at $24 808 to Sunshine Holdings during the 2017 financial year, but I could not obtain the resolutions (authorisation) supporting the sale.

“According to council cattle selling procedure, all cattle sales should be done through an environmental management committee recommendation and resolution of the council,” reads the findings.

Auditors noted that such unauthorised sales create room for potential fraud and misappropriation of council’s revenue. Last year, Harare City Council resolved to sell 1 000 cattle to finance the $1,2 million desludging of digesters and rehabilitation of the sludge heating system at Crowborough Sewerage Treatment Works.