By Correspondent
A corporate rescue plan has been put in place for City Parking to take over Harare Quarry (HQ) after the latter borrowed US$4,5 million from the City of Harare and failed to repay it.
HQ borrowed the money for the January to August quarter but according to the Town Clerk’s report to the Business Committee production remained depressed.
“There was production of 32 556.80 tonnes against a projection of 180 000 tonnes during this period.
According to the report dated 3 October 2024, ,”the cost of production consumed an average of 80 percent of the revenue leaving only 20 percent for administration and other financial obligations.
“Plant utilisation averaged 41 percent due to non availability of hauling equipment and working capital.
Harare Residents Trust Director Precious Shumba said HQ is still seeking for more funding.
“Despite this precarious business position, Harare Quarry is seeking one million USD from the City of Harare for capital and working capital, according to their annual business plan for the financial year 2024.
Harare Quarry board chairperson Oswell Binha has said Harare as a shareholder, is frustrating the process of resuscitating operations by not lending it the US$1 million.
Meanwhile Shumba argues that HQ has been reduced to a vehicle for corruption.
“This strategic business unit is being used to loot council funds.
Sanitisation
In a bid to sanitise the entity City Parking has been requested to finance the auditing of HQ.
The audit will cover the financial years 2021, 2022 and 2023 to ensure strategic business units are aligned to “expected good governance practices”.
The audits are supposed to provide a clean start for City Parking in running HQ.
Legacy of Bad Business
The Justice Maphios Cheda-led commission of inquiry recently accused Harare City Council management for the challenges affecting operations of its strategic business units (SBUs), especially Harare Quarry.
During the hearing Commissioner Norbert Phiri said HQ’s failure to perform is as result of the board, which is made up of the City of Harare employees.
“The majority of the board members at HQ is made up of City of Harare employees or assignees.
“So the failures of Harare Quarry are a result of the City of Harare since you control the majority,” he said.
“You agreed that Harare Quarry is underperforming and one attributed it to mismanagement.
“However, the mine is managed by its board members, including yourself and the majority being city of Harare employees.”.
