More rot exposed at inquiry into city operations

Trust Freddy Suburban Correspondent

The Commission of Inquiry into the operations of the City Harare this week heard about more rot involving financial mismanagement and the lack of an asset register for the city.

City of Harare subsidiary, Harare Quarry, has been operating in secrecy, failing to declare its revenue, profits or dividends to the council since 2018, the Commission of Inquiry into the city’s operations has heard.

This also comes amidst revelations that multiple council subsidiaries are withholding their finances, prompting calls for a full investigation into the potential mismanagement of public funds.

The revelations came out on Monday this week during public hearings before the Justice Maphios Cheda-led Commission of Inquiry into Harare City Council operations where council acting finance director Mr Godfrey  Kusangaya faced intense questioning and scrutiny.

Mr Kusangaya struggled to provide convincing explanations for the failure of certain subsidiaries to remit funds to council, despite his office being directly responsible for oversight.

Despite mounting concerns over its financial transparency, Harare Quarry, a company specialising in blasting, excavation, and processing of granite to produce quarry stones, has been actively advertising and selling its products.

Notably, in 2021, the company announced its transition to digital operations, unveiling an e-commerce platform that enables customers to place orders, buy products online, and engage in virtual conversations with staff.

However, the destination of its revenue remains shrouded in mystery and Mr Kusangaya admitted that the company was not availing its financial statements.

He disclosed that the city council generates approximately ZiG200 million monthly, with a significant portion of ZiG86 million allocated towards salaries.

However, the commission expressed concerns over the council’s non-compliance with the Government’s policy of allocating 70 per cent of revenue towards service delivery and 30 per cent towards salaries.

Mr Kusangaya struggled to justify the disparity and failed to explain why the council was unable to provide adequate service delivery despite receiving substantial revenue monthly.

Monday’s hearing also heard that Sherwood Golf Club has been operating without oversight since 2018, when the council cancelled its lease agreement, pointing to a massive revenue leak.

It was alleged that some individuals were pocketing the revenue generated at the club rather than finding its way into council coffers.

Witnesses also testified that the club had effectively been converted into a nightclub, with loud music blaring throughout the night, causing significant noise pollution for nearby residents.

Furthermore, it was disclosed that members of an apostolic sect had illegally occupied a portion of the land on the club while the once-manicured golf course had fallen into disrepair, with the lush green lawns now dry and neglected.

Harare City Council’s acting valuations and estates manager Mr Peter Dube, made startling admissions before the commission, revealing that the council lacks a consolidated asset register.

He further conceded that the current system creates a fertile ground for corruption and acknowledged that the council last collected revenue from Sherwood Golf Club in 2018 and claimed ignorance about the current occupant of the club.

Mr Dube attributed his inaction to relying on his legal team to handle the matter, yet six years have elapsed without a resolution.

He also expressed uncertainty about the status of other council properties, admitting that they had partially lost control of some of the properties.

The other members of the commission are Mr Steven Chakaipa, Mrs Lucia Gladys Matibenga, Ms Khonzani Ncube and Mr Tafadzwa Charles Hungwe. Local Government and Public Works Permanent Secretary Dr John Bhasera is the commission’s secretary.