Sundaymail Editor
Nyore Madzianike and Nokuthula Dube
IN May last year, President Mnangagwa appointed a commission of inquiry to investigate corporate governance challenges that have plagued the Harare City Council (HCC) over the past eight years.
The five-member commission, led by retired High Court judge Justice Maphios Cheda, was appointed under the Commissions of Inquiry Act, which grants the President the authority to order investigations into public institutions or matters deemed critical to public welfare.
A commission is a temporary body established through a Presidential proclamation and typically comprises individuals with relevant expertise and experience in the area under investigation.
In some instances, foreign experts may be included to ensure impartiality.
Commissions have the authority to gather evidence, summon witnesses and hold public hearings.
After investigation, the commission submits a report to the President outlining its findings and recommendations.
Since its establishment, the Justice Cheda-led commission has conducted extensive hearings where council officials and various stakeholders have exposed countless challenges affecting the administration of the capital city.
It has also conducted site visits to assess several council-led projects.
While initially given six months to complete its investigation, the commission’s mandate was extended by a further three months (to this month) to complete its mandate.
Below are some of the key issues that have emerged during its sittings:
Financial mismanagement
Most management officials and councillors appearing before the commission have admitted to a lack of financial accountability and gross mismanagement within the council.
Much of the City of Harare’s failures are attributed to operating without an effective enterprise resource planning (ERP) system since 2019, which has severely impacted governance and financial management.
An ERP system integrates core business processes such as finance, human resources, procurement and revenue collection.
The absence of a functional system has resulted in chaotic billing and poor revenue collection.
Most ratepayers receive estimated bills — if at all they get them — leading to unpaid fees and significant revenue shortfalls.
Experts estimate that the capital could be losing more than US$70 million annually in uncollected revenue as a result of the absence of an ERP system.
Appearing before the commission a fortnight ago, Harare Mayor Councillor Jacob Mafume described the situation at Town House as “chaotic”.
The local authority’s acting finance director, Mr Godfrey Kusangaya, who appeared before the commission earlier, admitted that the council’s accounting system was in disarray and did not align with standard accounting principles.
Mismanagement of business units
The commission also heard that the HCC is one of the largest property owners in Zimbabwe after the Government.
However, many of its properties are mismanaged, with little or no revenue being remitted to council coffers.
Some properties have disappeared from council records, while others have deteriorated due to neglect.
“Council is not benefitting. It is the biggest property owner after Government, but it is not benefitting at all. Properties are disappearing from the City of Harare,” said Mayor Mafume.
“The properties are not being run properly in the absence of an enterprise resource planning system.”
Notable business units like Rufaro Marketing, City Parking and Harare Quarry are operating without proper financial oversight.
The commission also learned that Citizens Coalition for Change (CCC) councillors appointed party loyalists to manage Rufaro Marketing, leading to the misappropriation of funds.
Of the US$1,5 million collected in rentals since 2022, only US$66 000 — just 4,4 percent — was remitted to the council.
The rest was reportedly used for unauthorised expenditures, including renovations at Rufaro Stadium.
Council chamber secretary Mr Warren Chiwawa, who also chairs Rufaro Marketing, said management had informed him that most of the money was spent on stadium renovations.
Additionally, the commission was told that properties like Hunters Bar in Mabvuku were rented to CCC members, while others were allocated to party affiliates.
The Business Committee chairperson, Councillor Lovemore Makuwerere, also revealed that a US$4,5 million loan advanced to Harare Quarry in 2017 was embezzled.
Despite recommendations to involve the Zimbabwe Anti-Corruption Commission (ZACC), no action has been taken, and the funds remain unaccounted for.
Illicit workshops
The commission also heard that the cash-strapped council spent ZiG230 million, approximately US$16 million at the time, on frequent utility workshops, often held weekly or even twice a week outside Harare.
The commission was informed that councillors and officials received substantial out-of-town allowances for the workshops.
One such case was an International Public Sector Accounting Standards (IPSAS) policy validation and compliance meeting attended by 177 officials from June 6 to 8 last year at the Kadoma Hotel and Conference Centre, which cost ratepayers ZiG154,6 million, nearly US$11 million.
Less than a week later, on June 15 to 16, the council shelled out US$122 000 at the same hotel for a one-night risk-based audit plan 2024 event.
Additionally, on May 29, 2024, the city splurged US$2 300 on lunch for just seven people at the now-underutilised mayoral mansion in Gunhill, Harare.
Providing evidence before the commission in August, acting city finance director Mr Godfrey Kusangaya admitted that between December 2023 and July 2024, the city spent an estimated ZiG230 million, roughly US$16 million, on workshops.
“We would hold workshops weekly and sometimes twice a week between December 2023 and July 2024,” he said.
“At times, I advised my seniors that we needed to scale down or limit workshops to those deemed critical.
“The appointment of the Commission of Inquiry for Harare, along with a directive from the parent ministry, ultimately halted these meetings.”
Illegal land sales, corruption
The commission heard that institutionalised corruption has allowed developers to sell 10 000 unserviced residential and commercial stands in Mabvuku and Warren Park, contrary to their development agreements.
The council’s audit committee chairperson, Councillor Blessing Duma, revealed that top officials were in cahoots with developers, leading to an estimated loss of US$20 million.
Housing director Mr Addmore Nhekairo testified that councillors were illegally allocating land, often bypassing proper procedures.
He blamed corruption, in the absence of a computerised waiting list, which has resulted in unauthorised subdivisions and subsequent calls for regularisation.
“The waiting list is not being adhered to,” said Mr Nhekairo in August last year.
“It is obsolete. The non-availability of a computerised waiting list has led to corruption.
“I agree that the process of regularisation has also circumvented the normal allocation process. The allocation grows in numbers just before and after elections.”
Obscene executive salaries
The commission also heard that former acting human capital director Mr Matthew Marara reportedly received over US$350 000 compensation for the period he was suspended without pay over corruption charges.
This emerged last month when Mr Marara was being questioned over his decision to rescind his resignation in 2020 and return to the council in 2023.
The evidence presented before the commission suggests that Mr Marara resigned after his suspension, but then backtracked in 2023, claiming he had never resigned from the local authority and was still a council employee.
It is alleged that he took advantage of the missing resignation letter to bounce back.
Mr Thabani Mpofu, who is leading evidence from witnesses appearing before the commission, said the information they obtained reveal that Mr Marara received US$350 000.
However, Mr Marara denied the claims, stating that he never resigned from the council.
He said the council agreed to pay him US$131 000, not US$350 000, with US$116 000 already paid out for the 30 months he was absent.
The commission was also told that Harare is gobbling up, up to 60 percent of its total revenue towards paying salaries, leaving little for service delivery.
Political interference
Mr Marara also testified that councillors frequently interfere in management, creating chaos.
He suggested that appointing a commission to run the council would allow employees to work without political interference.
Meanwhile, Mayor Mafume admitted that many councillors lack the necessary expertise to make informed decisions, which has led to ineffective governance.
For instance, Councillor Cecelia Chimbiri, chairperson of the Environment Committee, admitted she had no knowledge of wetlands management.
In response, Mayor Mafume stated that they had started requiring councillors to submit CVs before being appointed to leadership committees.
In an intriguing twist, the Works and Town Planning Committee chairperson, Cllr Takudzwa Dzumbunu, was fined US$300 for lying under oath about her academic qualifications.
She falsely claimed to have a Bachelor of Science Honours degree in Public Administration from the University of Zimbabwe.
When asked to provide proof, she later confessed to lacking university qualifications.
Long road to normalcy
So far, the commission’s investigation, which is set to conclude early this month, has exposed deep-rooted financial mismanagement, corruption and inefficiency within Harare’s governance.
While significant strides have been made in uncovering these issues, it is believed the real work lies ahead — rebuilding a city that has suffered from years of neglect and malpractice.
However, the inquiry marks an important first step towards a city that works for its people once again.
COUNCIL’S RAP SHEET
Council losing US$70 million annually in uncollected revenue
Properties disappearing from records
Of the US$1,5 million in rentals since 2022, only US$66 000 remitted to the council
US$4,5 million loan to Harare Quarry in 2017 embezzled
ZiG230 million, roughly US$16 million, spent on workshops between December 2023 and July 2024
US$20 million lost in sale of 10 000 unserviced stands in Mabvuku and Tafara by councillors, in cahoots with land developers
Matthew Marara paid over US$350 000 as compensation for period he was on suspension without pay
60 percent of revenues going to salaries
Unqualified and clueless councillors
Online Reporter