Joylene Mtandwa | The Harare City Council has lost over $180 000 in a scam involving three senior officials employed in the city’s Treasury department, through the issuance of fake Real Time Gross Settlement (RTGS).

According to an audit report dated 26 October, 2016, the three officials (names withheld because they are yet to be arrested) prejudiced the local authority of $178 594.28, through receipting fake RTGS transactions crediting several rate payers’ accounts.

The audit report, states tha the three senior Council officials targeted private business entities and individuals who owed huge amounts to the local authority in unpaid rates and demanded bribes to cancel their debts.

“Two Harare City Treasurer’s department clerical officers connived with an Error correction clerk in-charge of the RTGS office asked for huge kickbacks (as high as 50% of the reduced amount) from rate payers or their representatives to have their account balances reduced,” read part of the audit report.

“The Council employees did this by recruiting and receiving the kick backs and then created fake RTGSs which they later authenticated and caused to be receipted,” said the audit.

The audit report said an investigation into the issue was made after a tip off from a concerned rate payer whose account had been fraudulently credited with $2000.

Harare City Council is owned over $55 million by residents in unpaid rates, by government departments, private businesses and individuals and ordinary residents.

In a bid to recover the owed revenue, the Bernard Manyenyeni led local authority has engaged some debt collectors to attached debtors’ properties.