By Correspondent
Harare Town Clerk Hosiah Chisango recently admitted that the local authority lacks a consolidated accounting system, making it vulnerable to financial mismanagement.
The loopholes have resulted in massive financial leakages at Council.
“This is a legacy issue because when I joined the Harare City Council in 1995 these issues were already there.
“Yes, we do not have a proper accounting system because I joined the organisation and there were no such.”
Resultantly, there is a list of many who have escaped with vast amounts from Council with no repercussions.
Below we run down some of the most notable.
Paul Kruger- US$9 million
In 2019 former Local Government Minister July Moyo pushed a deal for known President Mnangagwa ally Paul Kruger to get a tender to supply water pumps for Morton Jaffray water plant.
It was a US$9 million tender which was completed privately.
Moyo was accused of corruptly awarding the lucrative deal to his alleged crony Kruger, to supply water pumps to City of Harare.
The multi-million-dollar contract was awarded to Petricho Irrigation leading tp public noise.
In 2022 Norton lawmaker Temba Mliswa formally reported Moyo to the Zimbabwe Anti-Corruption Commission (ZACC) over the deal.
3 years down the line the investigation has unearthed nothing and Moyo has actually been shifted Ministries.
Bloated Workforce
The Commission of Inquiry recently revealed that Harare Council is facing a financial crisis due to its bloated workforce which exceeds 10,000 employees.
Some of the roles are actually duplicates ultimately short-changing ratepayers by hindering the delivery of basic services to the residents.
The finance department alone employs more than 700 workers.
Despite this large workforce, the financial system of HCC is in shambles leading to massive leakages.
HCC Executive Assistant to the Town Clerk, Mathew Marara, admitted before the Commission that the workforce is excessively large.
“Even 300 is bloated.
“Yes, the percentage that goes towards salaries each month exceeds the limits that are prescribed by the government”.
HCC currently has more than 70 drivers responsible for refuse collection, but most of them are idle due to a shortage of vehicles.
Massive Salaries-50% of Total Revenue
Nearly 50% of Harare’s revenue is going towards salaries against a Government directive that only 30% be allocated for that.
This was revealed by the Acting Finance Director Godfrey Kusangaya during the ongoing Commission of Inquiry hearings in Harare.
Kusangaya said Council’s revenue per month averages around ZiG200 million.
However, ZiG86 million is allocated towards salaries.
This translates to 43% of total revenue.
Meanwhile, Government policy dictates that 70% of all revenue should be channelled towards service delivery.
Matthew Marara- US$350 000
Former Harare City Council Human Capital Director Matthew Marara reportedly received over US$350 000 compensation for the period he was suspended without a pay.
However, Marara disputed that alleging that Council agreed to pay US$131 000 with US$116 000 already paid out.
Meanwhile, Marara had been suspended after a US$1,1 million land deal involving 150 stands in Kuwadzana.
Now back at work as Executive Assistant to the Town Clerk, Marara earns US$12 000 per month.
Paul Tungwarara- US$200 000
On 13 December 2017 Paulos Construction, owned by Tungwarara, wrote to City of Harare offering to sell bitumen tar 70/100 at $1.45 per kg.
Council accepted and within 9 suspicious days officials had approved all paperwork and paid US$246 000.
However, by 2018 Paulos had only delivered 100 leaving a shortfall of 750.
Council allegedly lost over US$200 000.
2019 Council Refuse Scandal- US$62 000
In 2019 the City of Harare produced an audit report that accused the company of fraud.
The audit report detailed how council had been fleeced of over $62 000 by Paulos Construction.
However, Paulos said it had been a mistake of double payment by Council.
The company had actually notified Council of the mistaken payment.
Ken Sharpe- US$205 million
Through a secret Deed of Settlement executed on May 28, 2018, Augur Investments managed to get land worth US$205 million.
The deal gave Sharpe’s company dubious and illegal immunity from litigation over disputed vast tracts of land he acquired through the Airport Road Construction project which itself was not completed.
There is no evidence to suggest that Sharpe paid for the land he was given by Harare.
The deal involved 273 hectares of prime land in Harare’s affluent area of Pomona.
Though the land was worth US$205 million, it was allegedly undervalued to a mere US$20 million.
Amby Township- US$2 million
In 2024 a 7 member Council sub-committee uncovered a scandal that cost the municipality over US$2 million in a dubious land deal.
The investigation, initiated in May 2024, focused on the circumstances surrounding the occupation of stands 154 to 166 in Amby Township, Greendale, where cluster houses have since been constructed.
The findings were disclosed in a final report presented to the council by the sub-committee chairperson, Councillor Denford Ngadziore.
In an interview, Ngadziore confirmed that the council had lost more than US$2 million due to non-payment of property rates.
“We conducted over three months of investigations. During this period, we received threats in the form of calls, but we did not stop our work collectively,” he stated.
He added, “We have established that the land in question is private land with no rates collected for close to 45 years.
The beneficiaries of the land had fake offer letters, fake agreements of sale, and fake receipts of payment from the council.
Furthermore, there were no council resolutions to support the allocation of the stands.
Geo-Pomona -US$320 million
The Geogenix BV deal with Delish Nguwaya that ultimately gave birth to GeoPomona was as contentious as it is crazy.
Details for how the company gets to be paid by Council for waste submitted to it remains confusing worsened by the charges.
The deal states that the city must pay Geogenix BV US$40 per tonne delivered.
The stipulated daily delivery is at least 550 tonnes or a minimum 200 translating to US$8.03 million for Geogenix BV in the first year.
By the second year, the daily tonnage delivery will rise to 650; going up to 750 in the third year; 850 in the fourth year and 1,000 tonnes per day at the start of the fifth year.
This means Harare will pay Geogenix a minimum US$14.6 million annually starting in 2027 until 2052.
To add salt, the deal was agreed without an open tender and involves suspect characters such as corruption-accused Albanian businessman Mirel Mërtiri.
