City to borrow US$23,7m amid financial mismanagement

Suburban Reporter

The City of Harare plans to borrow US$23 773 000 to fund a number of capital projects ranging from sewer, water, electricity, refuse collection, clinics, heavy equipment and water meters.

In a notice published in the media on August 14, 2023, acting town clerk Engineer Mabhena Moyo advised the city’s stakeholders of the municipality’s intention to borrow US$23,7 million, in a move that is likely not to sit well with residents and ratepayers given the financial improprieties being exposed at the ongoing Commission of Inquiry into the operations of the City of Harare since 2017.

Numerous scandals involving councillors and senior council officials have been exposed at the ongoing Justice Maphios Cheda-led Presidential Commission.

The scandals involve the grabbing of housing and commercial stands as well as the milking of money from council’s subsidiaries notably Rufaro Marketing. Other council businesses such as City Parking are reportedly not remitting revenue to council.

The City of Harare says it needs more than US$23 million to fund a total of 28 projects.

“Notice is hereby given in terms of section 290 (3) (a) of the Urban Councils Act (Chapter 29:15), council resolved to borrow a sum not exceeding an amount equivalent to USD23 773 000. (Twenty-three million seven hundred and seventy-three thousand) for the purpose specified hereunder,” Eng Moyo said in the notice.

The breakdown of the capital projects council intends to fund with the US$23 million loan:

Glen Norah A Pay Scheme Mukuvisi River (Chambati-Amalinda Outfall) sewer project: US$4 million

Trunk and subsidiary sewers: $1 million

Rehabilitation of transformer sub-station LV #1 works: $400 000

Rehabilitation of 14 filters at Morton Jaffray Waterworks: $800 000

Domestic meter replacements (10000) (Marlborough, Hillside and Eastlea): $700 000

Trunk mains valves and chambers rehabilitation (water distribution): $1 million

Reservoir rehabilitation (Epsilon, Westgate, Marimba): $1,1 million

Water distribution pipe replacement (20km): $1,4 million

Booster pump station rehabilitation (Orange Groove, Lomagundi): $1 million

Domestic prepaid water meters (40 000 meters): $1, 301 000

Portable toilets: $100 000

Construction of public toilets (12) CDB and other locations: 247 000

Incinerator (waste management):   $100 000

Manhole shelter (waste management): $75 000

Omnibus (3) Waste Management and Corporate Communications: 200 000

Tractor 81 HP (52) 4 wheel drive (2) (solid waste and roads): $2 750 000

Refuse compactors (5), skip compactor bins (100): $1 million

Septic Tanker: $250 000

Construction and upgrading of bus terminus and bus stops: $1,5 million

Mobile clinic (1): 61 000

Service delivery trucks (3×7 tonne), (3x1tonne), (2X1tonne), (2x half tonne): $988 000

Solar street lighting (3 840 units): 725 000

Refurbishment of street lighting (CBD) 1 750 and trunk routes (460) $1 775 000

Sedan vehicles for audit (3): $66 000

Solar projects (5 regions): $250 000

Front end loader (3) for Development Control $200 000

Heavy duty wrecker (2): $360 000

Towing vehicles with cradle (2), recovery trucks (2x3tonne) and tyre fitting equipment: $425 000

Eng Moyo said those who want to object to the city’s plans to borrow the US$23,7 million should lodge their objections by September 6, 2024.

“Any ratepayer who has objections to the above can lodge his or her objections in writing to the acting town clerk on or before close of business (on) 6 September 2024,” said Eng Moyo.

Last year, the perennially cash-strapped city borrowed more ZWL$2,9 billion to fund capital projects ranging from the repair of bio-filters and sewer digesters and purchase of refuse compactors, cars for revenue collection and an incinerator.

Part of the ZWL$2,9 billion was earmarked to fund waste management awareness campaigns, buy 1×24 tonne excavator, 4XNP 200 pick-up trucks for revenue collection, 1xone tonne pick-up truck, unspecified car for the town clerk’s office, build five new public toilets in the central business district, complete seven under construction, buy 10 portable toilets and five manhole shelters.