A COMMISSION of Inquiry into Harare's operations revealed that City Parking, a company that manages the city's parking bays, operated for about a decade under a verbal agreement.
The company, notorious for its aggressive car clamping and harassment of motorists in central Harare, utilised the capital’s assets without paying rent, according to government officials' testimonies this week.
The public hearings are scrutinising Harare’s financial management systems and compliance with the Public Finance Management Act and other legislation.
On Tuesday, submissions focused on how Harare has managed funds obtained through special vehicle companies over the past seven years.
The Ministry of Local Government revealed that a formal agreement with City Parking was only signed in 2022, despite the company beginning operations around 2012.
Thompson Marufu, the ministry's financial adviser, stated: “City Parking has been in business with Harare City Council on a verbal basis and only established a Memorandum of Understanding in 2022”.
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Up to that point, he said City Parking was utilising public assets without any record of payment.
“However up to 2022, City Parking was utilising public (assets) but there is no record of payment for the use of those assets. We also requested clarity on funds relating to City Parking. The law says the funds are supposed to be deposited into a parking account," Marufu said.
He highlighted the lack of transparency and accountability, noting that there had been no dedicated parking account since 2013, as required by the Urban Councils Act.
"So there was no accountability. The Urban Councils Act requires gross collections to be deposited in that account. They are operating these things outside the law," Marufu said.
He added that City Parking was supposed to pay 20% of its income as rent, but without proper records, it was unclear how much had been collected or paid.
The commission also questioned the legality of City Parking's car clamping activities, pointing out that the Urban Councils Act does not grant the company authority to clamp vehicles.
“Officers who are clamping have no authority to clamp because the law doesn’t say so. According to the law, they are acting out of the agreement,” Marufu added.
He also noted confusion over City Parking's ownership structure, stating, “I don't think they have the copy of the share document, or they do not want to show it to us”.
President Emmerson Mnangagwa established the commission to investigate Harare's operations over the past seven years. The commission is led by former High Court judge Justice Maphios Cheda and includes Steven Chakaipa, Norbert Phiri, Lucia Gladys Matibenga, and Khonzani Ncube.
The ongoing inquiry into City Parking has raised significant concerns about transparency, accountability, and potential financial mismanagement within Harare's parking management system.