Online Reporter
Trust Freddy
CheckPoint Desk
THE City of Harare is facing a fresh wave of resistance from residents after announcing plans to borrow nearly US$17 million to fund service delivery projects, while a previous US$4,5 million loan for its subsidiary, Harare Quarry, remains unaccounted for, nearly eight years later.
The local authority recently published a notice in terms of Section 290 (3) of the Urban Councils Act [Chapter 29:15] seeking borrowing powers for an amount not exceeding US$16 763 000.
According to the council, the funds are intended to finance various infrastructure initiatives, including the Mbare Urban Renewal project (US$850 000), trunk and subsidiary sewers, and US$8 500 allocation for borehole drilling and installations.
The shopping list also includes US$1,5 million for 40 service vehicles, US$2,8 million for 52 tractors, and US$750, 000 for a traffic management system.
The move has been met with resistance from ratepayers who point to the unresolved 2017 scandal involving Harare Quarry.
Allegations are that the city received over US$4,5 million for the subsidiary’s recapitalisation, but the money vanished without a trace.
A forensic audit conducted by Parker Randall Chartered Accountants, covering the period between December 2017 and June 2019, exposed gross mismanagement.
The report revealed that Harare Quarry operated in “total secrecy,” failing to declare revenue, profits, or dividends.
Furthermore, US$56 000 was allegedly paid to ghost workers, while millions more lacked payment vouchers.
“Harare City Council needs to earn our trust back,” said Mr Tinashe Mbizvo, a resident of Budiriro. “How can they convince us this US$17 million will be used transparently when no single arrest has been made over the missing US4,5 million?”
Harare Residents Trust chairperson Mr Precious Shumba has slammed the city council for “institutionalising corruption,” pointing to a total absence of arrests as evidence of systemic failure.
He also urged President Mnangagwa to release the report of the retired High Court judge, Justice Maphios Cheda-led commission, which investigated the City’s governance issues dating back to 2017.
The director of the Combined Harare Residents Association (CHRA), Mr Ruben Akili, stated that it defies logic for the City to borrow funds when it has yet to plug existing revenue leakages.
“We know that the local authority lost about US$4.5 million from Harare Quarry, and the circumstances surrounding that loss remain unknown. Therefore, if they intend to borrow, we expect them to first establish mechanisms to ensure we do not continue to lose revenue.”
Mr Akili further argued that several projects the City intends to fund through loans could instead be financed by City Parking revenues and traffic fines.
“Take traffic lights, for example. We know that City Park remits funds to the local authority, and that money can be channelled towards the procurement and maintenance of traffic lights. Furthermore, the local authority claimed last month that they raked in over US$1,2 million from traffic fines. That is exactly the kind of revenue that should be used for these projects instead of taking out new loans.”
