Stakeholders Call for Audit of US$144 Million Harare Water Infrastructure Loan

daniel
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Stakeholders Call for Audit of US$144 Million Harare Water Infrastructure Loan

By Lynette Manzini

Community Water Alliance has called on Harare City Council to conduct an audit on a $144 million loan from China Exim Bank, acquired in 2013 to rehabilitate the Morton Jaffray Waterworks treatment plant. 

The loan was secured during the inclusive government era (2009 to 2013), and was meant to improve water supply in Harare.

 However, concerns have been raised about the council’s handling of the loan, including the lack of transparency in its utilization. 

 Over a decade later, the loan remains unpaid, and water supply in the city is still erratic, with some suburbs going months without water. 

 Harare City Mayor Jacob Mafume revealed that the loan is still outstanding, prompting the council to impose a monthly levy on residents to repay the loan.  

This decision follows the Harare Commission of Inquiry’s findings on exorbitant salaries and corruption cases within the local authority. 

 The Community Water Alliance is urging the city council to conduct an audit on the loan repayment, seeking clarity on how the funds were used.

 “We demand an audit of this loan so that we know how it has been used. 

 “We understand that ZIMFUND Phase 1 and Phase 2 committed financial resources to Morton Jaffray,” read the statement. 

 A 2014 committee led by Councillor Steward Mutizwa exposed the absence of a project bank account, making it difficult to track loan repayments and resource allocation. 

 The Community Water Alliance expressed dissatisfaction with the council’s handling of water, sanitation, and hygiene issues, particularly the imposition of policy decisions without consultation with stakeholders. 

 The levy to repay the loan part of three levies imposed by the city on residents to cover the purchase of an ambulance, installation of city lights, and infrastructure. 

 The $144 million loan is yet another case of questionable financial dealings by the Harare City Council, further eroding public trust in the local authority’s ability to manage public resources-

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By daniel
Daniel Chigundu is the Project Officer for OpenParlyZW, which runs the Open Council platform. He is a journalist since 2009 and is also the secretary general of the Zimbabwe Parliamentary Journalists Forum.
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