Chombo cracks whip on graft

appointment of a five-member team to manage council affairs.
Mutare provincial administrator Mr Fungai Mbetsa heads the team composed of labour and financial experts.

Other members of the team are Messrs Shingai Rukwata Ndoro, Patrick Chingoka, Ashlely Muzvidzwa and Jeffrey Mugauri.
Messrs Ndoro, Muzvidzwa and Mugauri were part of a team that was set up to investigate the council.

Other members of the probe team were Mr Stephen Hlatshwayo and Ms Cecilia Jones.
The minister said he is empowered by the Urban Councils Act to make such appointments.

Police have since been called in to investigate the irregularities.
Minister Chombo described mismanagement at the municipality as “outrageous and criminal in nature”.

According to a report produced by the investigation team appointed by Minister Chombo on December 28 last year, council was prejudiced by the actions of management and councillors.
Speaking at a full council meeting at Chitungwiza Aquatic Complex yesterday, Minister Chombo said he was shocked by events in Chitungwiza and said action will be taken against those responsible.

“In an act of evident criminal abuse of office, an individual within management atrociously siphoned council funds to purchase a house worth US$165 000 in the leafy suburb of Chisipite.
“The same house is being rented out to council for the benefit of one of the directors at a whopping US$1 300 monthly. The same individual, who illegally bought a personal house using council funds, is staying in a different house in Mt Pleasant at the expense of council to the tune of US$1 500 per month and yet accessing a housing allowance of US$320 monthly,” Minister Chombo said quoting the report.

According to the report, council made a part payment of US$80 000 for the house with the intention of accommodating the town clerk.
The house was being sold for $165 000.

As a result of cash flow problems, council failed to pay the balance.
Mr Tanyanyiwa allegedly borrowed US$85 000 from the cash-strapped municipality to pay off for the house that was then registered in his name.
Investigations also revealed how senior council officials milked council through loans that were not repaid.

Senior council officials awarded themselves personal loans of up to US$90 000 to buy cars and cover purported medical bills without council resolutions or clear paper trails.
“By the time of the investigations, loans amounting to US$324 000 had been issued out, but no deductions being effected from beneficiaries’ salaries. To make matters worse, the loans records are in shambles, with some pages ripped out,” reads part of the report.

This, Minister Chombo said, made it difficult to ascertain the exact amount owed to council by management.
In 2009, management allocated themselves car loans amounting to US$249 000.
Two years later, council spent US$537 830 to buy cars for the same individuals.

The investigators’ report also points to total disregard and manipulation of procurement procedures with council awarding high value contracts to incompetent companies.
“In most instances, the said companies were hand-picked by management and would either fail to deliver or deliver sub-standard materials after being paid by council,” Minister Chombo said.

Management reportedly issued orders worth US$4,5 million to two local companies without going to tender or carrying out due diligence.
Now council is in a precarious financial position and is failing to meet its statutory obligations.
Council is in salary arrears and failing to remit its statutory obligations to NSSA, Zimra, pension schemes and owes Harare City Council over US$8 million in unpaid water bills.

Inspite of this, council in June last year awarded a 132 percent salary increment across the board and recruited 204 workers without seeking approval from Minister Chombo as required by law.
This raised the wage bill from 67 percent to 87 percent of its revenue, forcing council to borrow US$3,450 million from banks to service the salary bill.

This was in violation of Section 292 of the Urban Councils Act.
Council is now failing to service the loans, resulting in the Public Sector Investment Programme funds from the Government allocated for sewer reticulation being withheld by one of the banks.
“Management is enjoying astronomical salaries and allowances soaring above most cities in the country to the extent that the highest-paid employee is earning above US$31 000 per month, excluding unlimited mileage, weekly fuel allocation, among other perks. In total, the monthly wage bill for management alone is US$299 170,” the report said.

Minister Chombo has now directed council to institute disciplinary action against all officials implicated in any misconduct.
“All assets procured using council funds should be accounted for. In this regard, due process should be instituted towards registration of such assets in the name of council. The mansion in Chisipite suburbia is a case in point. All monies owed by staff should be recovered starting from February 2012 and should be paid up by December 2012,” he said.

Minister Chombo also directed that two vehicles bought recently for the mayor and his deputy be surrendered as at 4pm yesterday.
He also reversed salary increments for management.

Mr Tanyanyiwa said the report by the probe team reflected the situation at council.
Councillors blamed management for the chaos.