HARARE Mayor Jacob Mafume claims more than US$250 million has been lost by the Council due to abuse, mismanagement and the refusal by top officials to implement an Enterprise Resource Planning (ERP) system.
He says the Council is on the verge of collapse, as its financial operations were running without any modern auditing tools.
Mafume said the Council has not audited its finances since 2019.
He was testifying before the Commission of Inquiry into the affairs of the City of Harare.
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He said the country’s biggest city has been operating without an ERP system since 2019, making it impossible to conduct audits or track revenue collection effectively.
He accused top executives, and some councilors, of deliberately blocking the system to cover up financial mismanagement and ensure a lack of accountability.
“Since 2019, there have been no audits because of the absence of an ERP system.
“The documented loss stands at US$200 million, but based on estimates, the actual figure is closer to $250 million.
“Millions have been lost through duplicate payments, revenue leakages, and erased debts,” he said.
He also claimed senior council executives, and some councillors, formed a corrupt network that actively prevented the adoption of an ERP system, which would have automated financial tracking, lease management, and municipal fines.
“The executives have created a system where financial loopholes exist, allowing theft and mismanagement to continue unchecked.
“Without an ERP, we are effectively running a city in the dark and there is no way to track where the money goes,” he said.
Although he acknowledged that councillors initially struggled to understand the importance of the ERP system, he said some eventually supported it, while others deliberately blocked it to protect corrupt dealings.
“Some councillors were misled into believing that any system could replace the previous one without proper procurement.
“Others feared that an ERP would expose financial irregularities, this is why, for six years, the council has failed to implement an essential system that could curb corruption,” he said.
Leading evidence lawyer Thabani Mpofu questioned why action has not been taken against the executives obstructing the system yet he had the power to suspend the Town Clerk.
Mafume said they had created a firewall to protect themselves.
“I was able to suspend the Town Clerk because the law allows it, but the rest of the executives must be dealt with by their superiors.
“They have manipulated the system to shield themselves from accountability,” he said.
“Operating a city without an ERP system is like running a bank without records, it is unheard of, and yet this is the reality in Harare.
“We have gone for six years without a system to track revenue and expenditure. That is why service delivery has deteriorated,” he said.
Mafume said several resolutions had been passed to implement the ERP system, but city officials ignored them. “We have passed more than six resolutions calling for an ERP system. The Ministry of Local Government and the Auditor General have all recommended its implementation, yet, management refuses to act.
“They will approve other projects but not this one, because they know it will expose corruption.
“We have now secured ministerial backing to install the ERP system and I expect the contract to be signed soon, if all goes well, this should be done within the next few weeks” he said.
He said he had done everything in his power to fight corruption, despite facing resistance from within the Council.
“I have been a lone voice in this fight but I remain committed to ensuring that Harare is governed transparently and that ratepayers’ money is accounted for,” he said.
