HARARE – The Harare City Council has been losing funds due to leakages and inefficiencies, with estimated losses exceeding US$250 million over the past five years, Mayor Jacob Mafume claimed during an ongoing Commission of Inquiry investigating the council’s operations since 2017.
The lack of a functional Enterprise Resource Planning (ERP) system has been cited as a major contributor to these losses. The council’s opaque billing system has created opportunities for corruption and embezzlement by senior officials.
Between 2019 and 2020, the Auditor General flagged financial mismanagement at the council, with over US$200 million unaccounted for.
Mafume suggested that the actual losses might be higher, as management has ensured that no audits have been conducted since 2019. He cited anecdotal evidence of millions being paid out, duplicate payments being made, and ratepayers’ fees being waived.
“I have tried everything to get an ERP system installed at the Council. I end up being accused of interference, but I have done everything humanly possible to get an ERP in place. We cannot function without an ERP.
“This is a deliberate act by our procurement department and management. They do not want an ERP system implemented,” Mafume said.
The Mayor also accused his fellow councillors of conniving with the management. He damningly stated that some of the councillors did not understand the importance of an ERP and could not comprehend the Auditor General’s recommendations.
“Some councillors have been complicit in frustrating efforts to get the ERP.
“Some of them could not understand the Auditor General’s recommendations,” he stated.
Mafume went on to state that, “that is where the council has collapsed.”
“There is no accountability. The management does not want to implement the resolutions about ERP.”
Asked by lead evidence investigator, Thabani Mpofu, if it was worth it keeping ‘incompetent’ councillors, Mafume stated: “Of course they shouldn’t be working there. They always find excuses for not implementing it.”
The council’s implementation of the SAGE system, which replaced Quill Associates’ billing system, has been riddled with inefficiencies. This has resulted in the council being unable to account for a significant amount of money, potentially amounting to billions.
Mafume has accused top officials of forming a corruption cartel, profiting from the chaos. He has also claimed that the council’s executive has obstructed his efforts to implement a functional ERP system.
Over 100,000 households are not in the council’s system, shortchanging the local government.
"I heard all about it and did nothing" Mafume, trashing himself.