KEY POINTS
- Harare City Council loses over $10 million annually due to leakages.
- The auditor general flagged more than $200 million in unaccounted funds.
- Corrupt officials are blocking efforts to install a proper ERP system.
According to Harare Mayor Jacob Mafume, the city loses about $10 million a year as a result of financial leaks, which are made worse by the absence of an effective Enterprise Resource Planning (ERP) system.
City Council loses millions due to lack of ERP system
Speaking at a Commission of Inquiry that has been looking into the Harare City Council’s operations since 2017, Mafume claimed that the lack of an efficient billing system has cost the municipality much-needed money.
The city has depended on an opaque billing system in recent years, which has given senior officials the chance to pilfer and commit wrongdoing.
Concerns of corruption have been raised by the auditor general’s frequent reports of financial mismanagement at the council, including the fact that over $200 million is still missing.
But according to Mafume, the real losses can be far greater.
“Management has made sure that no audits have been carried out at the council since 2019, so I am unable to provide precise figures,” he stated. “But we have anecdotal evidence—some ratepayers’ fees are waived, millions are paid out, and duplicate payments are made.”
According to Mafume, losses might amount to almost $10 million annually.
Billing system failures fuel corruption and inefficiencies
After Quill Associates, which had previously provided the city with a billing system, withdrew, the town adopted SAGE, a system that is rife with inefficiencies, according to Mafume.
According to New Zimbabawe, the city has consequently been unable to account for large sums of money. Parliament proposed in 2022 that the losses would reach billions.
Concerns regarding corporate governance at Town House have been raised by the Harare City Council’s failure to audit its financial statements for over five years.
Mafume claims that high-ranking city officials have benefited from the financial turmoil by forming a corruption cartel.
He disclosed last year that the absence of an ERP prevents over 100,000 households from being billed by the city, which further lowers revenue.
Additionally, Mafume charged that city officials were impeding his attempts to put in place a workable ERP system.
“I have made every effort to install an ERP system,” he declared. “I am ultimately charged with meddling, but I have taken all reasonable precautions. Without an ERP, we could not operate.
“This is a conscious move on the side of our management and procurement department. They oppose the implementation of an ERP system.
