Zimbabwe: Harare Lost Over U.S.$250m in 6 Years - Mayor
Harare Mayor Councillor Jacob Mafume has reported that the city has lost over US$250 million in the past six years, attributing this staggering figure to the lack of an effective Enterprise Resource Planning (ERP) system.
He alleged city executives had deliberately obstructed its implementation to facilitate the looting of municipal funds.
Clr Mafume's made the claims yesterday during his appearance before a Commission led by Retired High Court judge, Justice Maphios Cheda, which is investigating Harare City Council's operations since 2017.
He stated that the absence of an ERP system has resulted in a potential loss of US$200 million, as highlighted in the 2020 Auditor General's report, suggesting that actual losses could be 25 percent higher than previously estimated.
An ERP system is crucial for managing daily business activities, including accounting, procurement, project management, and compliance.
Clr Mafume expressed frustration over the reluctance of the city council's top executives and procurement department to revert to the previous ERP system implementer, Quill Associates.
He estimated that losses could reach US$10 million per year, totalling US$50 million over five years, in addition to the already reported US$200 million loss.
"My evidence is anecdotal because it frightens me that from 2019, for one reason or the other, management and procurement have failed. And I am beginning to think it's deliberate that they have failed to procure an ERP.
"And during the five years, the city has been bleeding. I am at the haemorrhage."
When asked if he and the councillors allowed this situation to persist, Clr Mafume defended himself.
"I have tried everything to get an ERP installed at council. I end up being the one accused of interference, but I have tried everything humanly possible to get an ERP at council. We can't function without an ERP."
He noted that many councillors lack an understanding of how an ERP system works, making them easy targets for executives who falsely claim the city can operate without one.
Clr Mafume criticised the executives for ignoring Government recommendations to implement an ERP system.
"Now, that is the deliberate act of our procurement department and management. They don't want an ERP in place. Of all the people in any organisation, our executives are in what I call a management paradise.
"No audits for five years. They will find a reason from pillar to post to not implement. We were given an order to implement this recommendation by the Ministry last year, about three months ago, it still has not been done. They are finding any and every reason. Now, the reason is me."
The absence of an ERP has led to a dysfunctional billing system, characterised by double billing and lost records, leaving residents facing a myriad of issues.
The city council abandoned its high-end ERP system in March 2019, exacerbating the problems faced by both the administration and the community.
Meanwhile, the commission has denied claims circulating on social media that it apologised to Clr Mafume, over allegations of receiving a US$200 000 kickback from Quill Associates of South Africa to secure a tender.
Speaking at yesterday's hearings, commission chairperson retired Justice Cheda issued a strong warning to members of the media, urging them to refrain from spreading false information about the ongoing inquiry into the affairs of the municipality.
"We would like to put the record straight that this commission has not directly or indirectly made any apology to the mayor and to any other witness who has given evidence towards him.
"The correct position is that the mayor is still giving evidence. The commission will not tolerate anyone who is trying to directly or indirectly peddle falsehoods, which are calculated to intimidate, threaten or influence persons who are charged with investigating this matter. "
Justice Cheda also warned the media that they risk litigation for spreading information meant to derail the ongoing probe.
Read the original article on The Herald.