Auditor General Flags U.S.$1.82 Million Waste On Abandoned Makuti Dry Port Project

• The Auditor General has flagged US$1.82 million in waste on the abandoned Makuti Dry Port Project.
• The project incurred significant expenditure without conducting a feasibility study prior to initiation.
• The failure to conduct a viability assessment contravened Section 44(1)(a)(iv) of the Public Finance Management Act [Chapter 22:19].
• The Auditor General's report highlights weaknesses in project planning and governance, recommending strengthened processes for evaluating major capital projects.

The failure to conduct a feasibility study before committing public resources contravened Section 44(1)(a)(iv) of the Public Finance Management Act [Chapter 22:19].

The Auditor General has identified US$1.82 million in public funds lost due to the abandonment of the Makuti Dry Port Project. The project incurred significant expenditure on consultancy and project design services between 2022 and 2025, despite a lack of feasibility study prior to initiation. This failure to conduct a viability assessment before committing resources contravened Section 44(1)(a)(iv) of the Public Finance Management Act [Chapter 22:19]. The Auditor General's report highlights weaknesses in project planning and governance, classifying the expenditure as unfruitful.

The Public Finance Management Act requires public entities to establish effective systems for evaluating major capital projects before implementation. Section 44(1)(a)(iv) specifically mandates that public entities conduct feasibility studies prior to initiating projects, ensuring that resources are invested in viable initiatives capable of delivering value for money. The Auditor General's report underscores the importance of complying with this legislation to prevent avoidable financial losses and costly abandoned investments.

The findings of the Auditor General's report have significant implications for public finance management in Zimbabwe. The report highlights the need for government institutions to strengthen project planning processes, ensuring that economic, technical, and financial viability assessments are completed before committing significant public funds to capital projects. This is crucial for minimizing the risk of costly abandoned investments and ensuring that public resources are invested in initiatives capable of delivering value for money.

Lawyers and compliance officers should review their clients' project planning processes to ensure economic, technical, and financial viability assessments are completed before committing significant public funds to capital projects.

Source: Original reporting via AllAfrica