Fuel fraud costs council $55 000

Abigail Mawonde Herald Correspondent
Harare City Council could be losing thousands of dollars through fraudulent procurement procedures, amid revelations that there is no documentation to account for fuel worth over $55 000.

In her December 31, 2016 report, Auditor-General Mrs Mildred Chiri said the implications of mismanagement of records could result in financial loss due to fraud and misstatement of fuel and oil expenses.

The report indicated that from a period between January 15 to August 13, 2015 fuel and oil amounting to $55 880 was misappropriated.

Mrs Chiri recommended that the management ensures that all supporting documents are availed for audit. In their response, the management said the matter was subject to an internal audit enquiry and the said documents could not be located.

Added the management: “It is suspected that the dismissed former employees could have destroyed the documentation in order to conceal evidence.”

The city council has been in the media for wrong reasons involving corruption with some cases still being handled by the courts of law.

Recently, The Herald reported $35 million was allegedly defrauded by the former town clerk Dr Tendai Mahachi, waste management manager Simon Muserere and water director Christopher Zvobgo.

The trio are facing charges of fraud, criminal abuse of office and corruptly concealing a personal interest in a transaction.

It is alleged that sometime in 2010, the three smuggled unregistered companies for the award of the contract for Firle sewage works.

Invoices were raised for payment purporting that work had been done when in fact nothing had been done.

It was later discovered that one of the companies, Showbite Engineering (Pvt) Ltd was owned by Muserere’s in-laws who would withdraw money deposited by City of Harare.

The other companies involved were Sidal Engineering (Pvt) Ltd and Energy Resources of Africa Consortium (ERAC) whose company name was manipulated to Portriver as a cover up.

The city council lost $35 000 619,54.

Other corrupt activities reported include the issuing of fake business licences and commuter omnibus rank disks by its employees prejudicing the city of thousands of dollars.