Online Reporter
Check Point Desk
MILLIONS of dollars allocated to the City of Harare for road rehabilitation and water infrastructure upgrades have vanished under questionable circumstances, with council records showing payments to contractors for projects that were never completed, an investigation has revealed.
A damning internal audit conducted in 2019 showed that at least 43 road rehabilitation contracts were fully paid for by the City of Harare, yet no physical work was done on the ground.
One of the companies implicated, Fossil Contracting, reportedly received US$1,7 million for work on Kelvin South Road which remains untouched to this day.
Council documents indicate that over US$7,4 million was disbursed to various contractors that year alone, but site inspections confirmed that none of the projects had been implemented.
In some cases, payments were made despite contractors failing to mobilise to site, raising concerns of collusion between council officials and service providers.
Harare acting finance director, Mr Godfrey Kusangaya, confirmed the development while appearing before a Government-appointed Commission of Inquiry, saying the city lacked an integrated financial management system to track subsidiary operations and contract performance.
“We do not have a consolidated balance sheet that includes entities such as Harare Quarry, Rufaro Marketing, or City Parking. We rely on manual records which are often incomplete or delayed,” he admitted before the Justice Maphios Cheda-led Commission of Inquiry into council operations.
The investigation also uncovered irregularities in the procurement of materials for water infrastructure.
The City of Harare secured a US$144 million loan from China Eximbank in 2013 for the rehabilitation of the Morton Jaffray Waterworks, but key components of the project were never delivered.
One contractor, Sidal Engineering, was controversially awarded a major pipe replacement tender without going to public tender, and allegedly failed to commence work despite receiving significant advance payments.
Further scrutiny has been directed at Juluka Enndo Joint Venture, linked to local businessmen Mike Chimombe and Moses Mpofu, which was awarded a US$9.2 million tender to install street lights across Harare.
Investigations by the Zimbabwe Anti-Corruption Commission led to the arrest of town clerk Hosiah Chisango for allegedly bypassing procurement procedures and awarding the tender without competitive bidding.
Meanwhile, an audit into Harare Quarry, a council-owned entity, revealed the disappearance of US$4,5 million in loans advanced by the city in 2018.
The audit by Parker Randall found no supporting documentation for the disbursements, no signed loan agreement, and no repayment plan. It also discovered ghost employees and inflated salaries at the company.
Despite these findings, residents continue to face deteriorating service delivery with unpaved roads riddled with potholes, frequent water cuts, and burst sewer pipes.
The Government has since called for forensic audits into all municipal contracts awarded between 2017 and 2024.
Local Government and Public Works Minister Daniel Garwe is on record saying the rot at Town House reflected a broader culture of impunity and mismanagement that must be urgently addressed.
“The level of financial mismanagement uncovered at the City of Harare is unacceptable. Funds meant to improve lives are being looted with no accountability,” Minister Garwe said.
The Commission of Inquiry submitted its full report to the President’s Office.
City of Harare spokesperson Mr Stanley Gama did not respond to the questions sent to him via WhatsApp as the messages blue ticked showing acknowledgement of receipt.
