A COMMISSION of inquiry looking into the financial affairs of Harare City Council (HCC) has unearthed that council has not received remittances from its Rufaro Marketing Board (RMB) business unit since 2022, NewsDay can report.
This could have prejudiced the embattled city an estimated US$2 million over that duration.
RMB runs a number of business enterprises, including community beerhalls across the capital on behalf of HCC.
The Justice Maphios Cheda-led commission, set up by President Emmerson Mnangagwa in May, is investigating the local authority’s financial matters dating back to 2017.
Appearing before the commission, RMB chairperson Warren Chiwawa said the business unit collected between US$35 000 and US$45 000 on a monthly basis, adding that there could be bigger amounts for annual collections.
“Currently, it vacillates between US$35 000 and US$45 000 per month, but it is not the full capacity,” Chiwawa told the commission last week.
However, for two years, the commission heard that the business entity has not been remitting funds to HCC.
“We have evidence from the finance director. He informed the honourable commission that you are not remitting anything,” Justice Cheda said.
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Chiwawa denied any wrongdoing.
“That’s not entirely true. According to the council resolution, it’s 60% towards social services like stadiums, 20% coming as cash or transfer and then the other 20%, we retain for administration and related services,” he said.
“We have remitted around US$60 000 in cash to the City of Harare disaggregated as a US$32 000 deposit, then we made another deposit of US$24 000 and then another deposit of US$7 000.”
Chiwawa explained that the bulk of their funds, constituting 60%, were channelled towards service delivery.
Despite denying the allegations, Justice Cheda challenged Chiwawa to absolve himself of the alleged wrongdoing.
“The money is going into their own pockets. Since 2022, there are no remittances that have been paid,” Justice Cheda said.
“They are not meeting the responsibilities of council.”
However, the RMB chairperson maintained that the entity was remitting funds to HCC in hard currency as well as in the local unit.
Justice Cheda revealed that RMB top officials were leasing a number of HCC assets to themselves, thereby prejudicing the local authority of revenue.
He also alleged that RMB was mobilising funds for the Citizens Coalition for Change (CCC).
Said Justice Cheda: “We have a video of Hunters Bar and we are going to show you how these bars have dilapidated alongside Kuwadzana shopping centres and the 30 tuckshops that you have leased in your names.”
