By Correspondent
Embattled Harare City Council has lost over US$200 million since 2019 when it lost its ERP system.
This was revealed by the Mayor Jacob Mafume while presenting before the Harare Commission of Inquiry in Harare.
However, Mafume said undocumented losses could exceed that.
“Since 2019, there have been no audits because of the absence of an ERP system.
“The documented loss stands at US$200 million, but based on estimates, the actual figure is closer to $250 million.
“Millions have been lost through duplicate payments, revenue leakages, and erased debts,” he said.
Council’s discontinued its relationship with the BIQ ERP system from Quill Associates of South Africa in 2019 over financial disagreements.
It replaced it with the Sage Pastel system which was then widely criticized for failing to meet the city’s needs.
Since then the local authority has operated with no ERP system leading to massive financial leakages.
US$50M Losses Per Year
Appearing before the same Commission Town Clerk Hosiah Chisango said per year they lose US$50 million.
“When we look at our budgets, it is in excess of US$500 million per year.
“Due to the system not operating well, our revenues are subdued to between 40 percent and 50 percent of what we should be collecting.
“An estimate would suggest that if I had a functional system, I would probably collect 75 percent.
“So, the 25 percent shortfall is what I would actually attribute to the absence of (the ERP system).
“We are probably looking at US$60 million to US$70 million a year,” he said.
Criminal Resistance
Efforts to correct the error have however faced resistance from criminal officials according to Mafume.
“Some councillors were misled into believing that any system could replace the previous one without proper procurement.
“Others feared that an ERP would expose financial irregularities.
“This is why, for six years, the council has failed to implement an essential system that could curb corruption,” Mafume said.
The internal resistance has resulted in various resolution failing to yield results.
“We have passed more than six resolutions calling for an ERP system.
“The Ministry of Local Government and the Auditor General have all recommended its implementation but management refuses to act.
“They will approve other projects but not this one, because they know it will expose corruption.
“We have now secured Ministerial backing to install the ERP system and I expect the contract to be signed soon, if all goes well.
“This should be done within the next few weeks” he said.
