Massive Corruption Unearthed in Harare City Council: Mavaza
5 August 2024
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Harare’s Dirty Little Secret: A Billion Dollar Mess – Millions Diverted to Fund Opposition Political Party-

By Ilyana Sithole and Dr. Masimba Mavaza | The ongoing City of Harare Commission of Inquiry has revealed a staggering pattern of corruption and mismanagement within the City of Harare’s procurement department, based on testimony from the Acting Auditor General. The city council’s actions have been shrouded in secrecy, but the Commission has uncovered evidence pointing to a massive cover-up and opposition political involvement.

Dr Masimba Mavaza

At the heart of the scandal lies the city’s procurement process, a system so flawed that it has allowed for the unchecked pilfering of millions of dollars. The city council’s attempt to do direct procurement, despite being turned down by the Special Procurement Oversight Committee, raises serious questions about its commitment to transparency and accountability. Through unauthorized deals, the City Council has lost millions, which can be traced right to the CCC doorsteps.

But that’s just the tip of the iceberg. The testimony reveals a complex web of corruption that goes all the way to the top of the City Council. Rufaro Marketing, a subsidiary of the city council, was used as a slush fund to finance the opposition party, Citizens for Coalition Change (CCC). Properties were disposed of without transparency, and the company was not audited during the tenure of its former CEO, Daniel Mutiwadirwa. City council recreational properties, like football grounds, were subdivided into small tuck-shops for CCC councillors.

The rot goes even deeper. The city’s financial management system collapsed in 2019, and there has been no credible financial reporting system since then. The city’s subsidiaries, including Sunshine Holdings, City Parking, and Rufaro Marketing, have not had their financial statements consolidated, making it impossible to track the flow of money. Millions of US dollars are unaccounted for as no financial books were ever inspected.

But what’s even more alarming is the city council’s brazen disregard for the law. The city borrowed $32.5 million without Ministerial approval, a clear violation of the Urban Councils Act. And when questioned about it, the city council’s response was deafening silence. The borrowed $32 million is now missing.

The Commission has learned that the city council’s actions have been shrouded in secrecy, with key documents and information withheld from the public. Through evidence presented during the hearings, the Commission uncovered a trail of evidence pointing to a massive cover-up.

### Key Findings:
– The city council extended its use of a temporary enterprise resource planning system from 12 months to 36 months without authorization.
– The city council recommended a company, Manisoft, for a contract worth $47 million, despite having a budget of only $500,000, putting ratepayers in unreasonable debt. The company has strong links to the opposition.
– The city council’s finance and audit committees lacked basic financial and accounting skills to perform their oversight role effectively.
– The city council borrowed $32.5 million without Ministerial approval, and the money cannot be accounted for. The city’s finance books resemble a dog’s breakfast.
– Rufaro Marketing was used as a slush fund to finance the opposition party, CCC.
– Properties were disposed of without transparency and sold or rented to CCC officials at little or no cost.
– The city’s financial management system collapsed in 2019, with no measures put in place to protect and track public funds.
– There has been no credible financial reporting system since 2019.
– The city council’s procurement department has been operating without a functional general ledger since 2019, and millions of dollars cannot be accounted for. The city council’s bank accounts have not been reconciled since 2019.
– The city council’s asset register is incomplete and inaccurate.

Perhaps the most egregious aspect of this scandal is the city council’s decision to fund a political party with ratepayers’ money. What could possibly justify using public funds to finance a political party? Is this not a clear violation of the public’s trust?

Meanwhile, the residents of Harare continue to suffer. The city’s infrastructure is crumbling, with potholed roads, burst pipes, and uncollected trash. The healthcare system is in shambles, with hospitals lacking basic medical supplies. The education system is underfunded, with schools lacking textbooks and qualified teachers.

And yet, the city council sees fit to use public funds to finance a political party. It’s a staggering display of misplaced priorities and a clear indication that the city council is more interested in serving its own interests than those of the people of Harare.

“The people of Harare deserve better. They deserve transparency, accountability, and a city council that serves their interests, not just the interests of a select few. It’s time for a full investigation into the city’s procurement department to uncover the extent of the corruption and mismanagement. Those responsible must be held accountable for their actions,” commented Harare resident Masimba Machando.

The Commission is not yet done with this inquiry. Many more acts of theft, sabotage, fraud, and thuggery in the City of Harare are expected to be revealed as the inquiry progresses.