US$100m vanishes from Harare Council coffers

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The City of Harare is in turmoil as investigations reveal a failure to account for over US$100 million, raising alarming questions about potential misappropriation and grand theft of council resources. A commission of inquiry tasked with investigating council operations since 2017 has unveiled extensive allegations of corruption involving senior council management and councillors.

Chaired by retired judge Justice Maphios Cheda, the commission was appointed by President Emmerson Mnangagwa in May this year to delve into the mismanagement of public funds. Last week, a senior council official was interrogated about the missing funds but was unable to provide satisfactory explanations, attributing the oversight to a disorganized financial system.

A 2020 report by the auditor-general highlighted significant irregularities within the council’s accounting practices, primarily due to the absence of an enterprise resource planning (ERP) system. This deficiency has resulted in millions of dollars remaining unaccounted for. Costa Mande, chairperson of the council’s finance and development committee, confirmed that US$105,542,000 could not be traced.

“As per the auditor general’s report, that is indeed true,” Mande stated. “We had to query the staff, and I think there was a recommendation to verify those figures. There is a great possibility that money could have been misappropriated.”

ERP systems are critical tools that enable councils to efficiently manage their operations and finances. Last year, Mnangagwa introduced a service delivery blueprint titled ‘A Call To Action – No Compromise On Service Delivery,’ aimed at modernizing local authorities, particularly through the implementation of ERP systems.

However, reports from July indicated that the council had proposed spending US$2.6 million on ERP systems. Mande disclosed that the council had initially been billed US$57 million for the ERP, a figure that represented an outrageous US$55 million discrepancy. “We have been pushing to have a proper billing system in place,” he said, noting that the council did not budget for the exorbitant ERP costs.

Despite the staggering amounts of unaccounted funds, residents continue to endure inadequate service delivery, with the local authority frequently citing a lack of resources.

In a related development, Harare Mayor Jacob Mafume recently suspended acting Town Clerk Hosiah Chisango amid a series of corruption allegations. The claims include the illegal awarding of a US$9.2 million tender to businesses linked to ZANU-PF. Four other council officials are also facing legal repercussions in connection with the same tender scandal.

As the commission of inquiry continues its work, the residents of Harare are left grappling with the consequences of alleged corruption and mismanagement, prompting calls for accountability and transparency within the local government.