A LEAKED audio recording has exposed a new wave of corruption within the City of Harare, with mayor Jacob Mafume revealing that officials attempted to disburse US$1,5 million to a company with no existing contract with the local authority.
The Zimbabwe Independent has exclusively obtained the recording, which unveils the shocking extent of the ongoing plunder of public funds by city officials.
This latest revelation comes after the shocking exposure of how Harare City executives siphoned off a staggering US$200 million in 2019.
During a recent meeting between Mafume and senior officials from the Procurement Regulatory Authority of Zimbabwe (Praz), the mayor detailed the depth of corruption at Town House, noting that around 50 finance officers are currently suspended over corruption allegations.
“There is a company that had to reject a credit note from city council. They said someone from city council wrote to them stating that the ‘city council owes you US$1,5 million and that we need your accounts to pay that US$1,5 million’. They then wrote back to say no, we never supplied any goods of that nature,” Mafume is heard saying.
However, Mafume did not name those involved in this new scandal.
Town Clerk Hosiah Chisango is already in remand prison over an alleged US$9 million solar streetlight tender scam, but the looting continues unabated.
Council officials have long manipulated tenders to embezzle funds from various city resources.
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The recording clearly demonstrated the predicament of a city in peril — a municipality that has been collecting hefty sums from its mostly impoverished residents to feed a small group of corrupt officials.
The staggering revelations came as it emerged part of the US$200 million which vanished was used to fund councillors’ election campaigns and extravagant lifestyles.
Zimbabwe’s capital has been operating without a proper billing system since 2019, leaving billions of dollars exposed to systematic looting.
A parliamentary report released in 2022 highlighted this glaring gap, following an Auditor-General’s investigation that uncovered the missing US$200 million.
The chaos began when Harare ditched its digital accounting system for manual processes, a move that has proven to be a gold mine for corrupt city officials.
The tender process for a new Enterprise Resource Planning (ERP) system has been mired in controversy, with Praz moving to block the corruption.
In 2019, the Auditor-General recommended that Harare re-engages Quill Associates, the supplier of its previous billing system, BIQ, which had been abandoned over a pricing dispute.
However, council officials dragged their feet allowing the current crisis to escalate.
Mafume described how a letter from a senior official blocked the procurement of a new ERP system, delaying digitalisation and perpetuating the looting.
The official, who is believed to be part of a well-knit cartel, is pushing for Harare to purchase a US$57 million ERP system, despite the availability of a much cheaper alternative priced at US$360 000.
Mafume has been vocal in condemning some Praz officials suspected of working with the “cartels” at the municipality bleeding Harare dry.
He pointed out that the initial missing US$200 million was now considered “cheap change” compared to what has been lost since 2019.
“There is rampant theft,” Mafume told the meeting, as he lobbied Praz for a transparent tender process for a new ERP system.
“The Auditor-General’s report … recommended that we reinstate Quill Associates in order to chase some missing amounts of money, US$200 million. To be precise, that has created a financial black hole ... But the financial black hole, I must admit has probably grown bigger because that was (in) 2019.
“When the Auditor-General undertakes another auditor, this US$200 million is going to be cheap change compared to the amount that is going to be found missing because of the systems mess that we have created.
Currently, 50 finance officers are on suspension, accused of manipulating Harare’s accounts, with some allegedly pocketing millions of dollars.
“These people are getting rich. They are stealing every day.
“Our markets have a potential of producing US$1 million per month in revenues but we are getting about US$400 000 per month. The money is just being taken … people ripping the system, cemeteries, everything. We can’t prove it.”
In a recent interview with the Independent, the Harare mayor blasted the cartels for pushing the billing system that could cost US$57 million, saying this would further burden Harare’s beleaguered residents.
“The situation is such that we are now all taking a hammering as an organisation for failing to put a functional ERP for five years,” Mafume said. “Every year, we have been operating on a financial lagoon because of the manual system.
“We are six months behind with our supply (of records). So, if somebody supplies us chemicals today, we will know the exact position six months later.”
A Praz official confirmed attending the meeting.
Mafume also confirmed meeting with Praz, saying Harare had submitted documents requested by Praz.
Government early this year established a commission of inquiry into the operations of Harare, which has exposed shocking vice.
