Harare City Parking is embroiled in a controversy surrounding its currency practices. The company is under investigation for allegedly remitting local Zimbabwean dollars (ZWL) to the Harare City Council for the past five years, despite collecting parking fees in US dollars.
Commission of Inquiry Uncovers Discrepancy
The discrepancy came to light during a public hearing conducted by a Commission of Inquiry tasked with investigating the operations of the Harare City Council since 2017. Established last month by President Mnangagwa and chaired by retired judge Justice Maphios Cheda, the commission is scrutinizing the council’s financial activities.
During the hearing, City Parking officials faced questions about a mismatch in the currencies used for parking fees and remittances to the city council. While motorists were consistently billed in US dollars, the company reportedly remitted local currency to the council.
City Parking managing director, Simon Muzviyo, defended the company’s practices during the hearing. He argued that the discrepancy reflected the economic situation in Zimbabwe at the time the remittances were made.
“It’s important to remember that in 2017 and 2018, the exchange rate between the US dollar and the local currency was essentially one-to-one,” Muzviyo explained. “Even after the introduction of Statutory Instrument 142 of 2019, which adjusted the exchange rate, we continued to record the amounts in ZWL.”
Commission Presses for Clarification
The commission remained unconvinced by Muzviyo’s explanation. Commissioners pressed him further, specifically asking whether motorists ever paid parking fees in US dollars. In response, Muzviyo acknowledged a potential oversight in the documentation presented to the commission.
“There might be a typing error in the documents we submitted,” Muzviyo conceded. “While the financial statements might show remittances in ZWL, this was an honest mistake. The remittances were made in the same currency we received the payments in.”
The ongoing investigation by the Commission of Inquiry highlights the critical importance of transparency and accountability in financial management. The outcome of the probe is expected to shed light on City Parking’s remittance practices and determine if any financial irregularities occurred.
The potential implications for Harare City Parking are significant. If the investigation reveals that the company deliberately remitted local currency at a lower value than the US dollars collected, it could face serious consequences. These could include financial penalties, reputational damage, and even potential legal action from the city council.
Motorists Seek Clarity
Motorists in Harare are also following the investigation with concern. They want to understand if they were overcharged for parking or if the city council was potentially shortchanged by City Parking’s remittance practices. A clear resolution from the commission is crucial to ensure public trust in both City Parking and the city council’s financial management.
The Commission of Inquiry is expected to continue its investigation into Harare City Parking’s currency practices. The outcome of the probe will be closely watched by the city council, motorists, and the public at large. Transparency and accountability in resolving this controversy are paramount to restoring public confidence in the city’s parking system and financial management.
Source: New ZimbabweÂ
