Zimbabwe: Harare Losing U.S.$10 Million a Year Due to Opaque Billing System - Says Mayor Mafume, Last Council Audit Done Five Years Ago

11 February 2025
New Zimbabwe (London)
By Darlington Gatsi

HARARE Mayor Jacob Mafume has shockingly revealed that the City Council is losing more than US$10 million due to leakages, exacerbated by the lack of a functional Enterprise Resource Planning (ERP) system, depriving the municipality of much-needed revenue.

Mafume made these revelations at the ongoing Commission of Inquiry, which is investigating the operations of Harare City Council since 2017.

In recent years, Harare City Council has been operating using an opaque billing system, which has created opportunities for corruption and embezzlement by senior officials.

The Auditor General has repeatedly flagged the financial mismanagement at Harare City Council, with more than US$200 million unaccounted for, raising suspicions of corruption within the municipality.

However, Mafume suggested that the amount identified by the Auditor General might be lower than the actual losses incurred by the council.

"I am unable to provide exact figures because management has ensured that no audits have been conducted at the Council from 2019 to date. However, we have anecdotal evidence. Millions are paid out, duplicate payments are made, and some ratepayers' fees are waived.

"We could be looking at losses of around US$10 million per year. The City Council has been haemorrhaging funds," said Mafume.

Following the withdrawal of Quill Associates, which had been supplying the City Council with a billing system, the municipality implemented SAGE, a system riddled with inefficiencies.

This has resulted in the City Council being unable to account for a significant amount of money, which Parliament in 2022 suggested could amount to billions.

Harare City Council has failed to audit its accounts for over five years, raising serious concerns about corporate governance at the Town House.

According to Mafume, top officials at the City Council have formed a corruption cartel, profiting from the chaos.

Last year Mafume revealed that as a result of the lack of ERP, more than 100,000 households are not in the system of the Council, shortchanging the local government.

Mafume also claimed that the Harare City Council Executive has been obstructing his efforts to implement a functional ERP system.

"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," said Mafume

Read the original article on New Zimbabwe.

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