The Harare City Council is operating without a complete database of shops and businesses, prompting worries about potential mismanagement and corruption within the local authority.
This absence of oversight has reportedly enabled council executives to assign themselves sectors for management, which could lead to personal financial gain.
Compounding the issue, the city has not utilised an Enterprise Resource Planning (ERP) system for the past six years, resulting in significant challenges in tracking cash flow.
Consequently, Harare has been unable to collect revenue from its 130 beer halls for over 13 years, with three establishments allegedly sold corruptly due to the lack of a proper database.
The rise in counterfeit shop licenses has further complicated matters, as the local authority misses out on potential revenue.
Both legitimate council officials and impostors have exploited gaps in the business licensing department, extorting money and goods from shop owners lacking licenses.
Harare Mayor Jacob Mafume acknowledged the absence of a functional database.
“A contract to monitor shops and businesses was suspended midway,” he stated, but he became evasive when asked for more details.
However, a letter from Ten Ten Tech, a company previously contracted by Harare City Council for partial management of business premises, revealed that it collected over US$20 million in just four years.
The system operated from October 2017 to May 2021 and provided daily reports on revenue, keeping City of Harare officials informed about collected funds.
The letter noted that US$15,062,851 and ZWL 49,944,432 were collected during this period.
Ten Ten Tech’s contract was terminated amid controversy, and the company is still seeking payment for its services.
Councillor Denford Ngadziore, chairperson of the Small and Medium Enterprises Committee, mentioned that the city has now reduced the monthly fee for small shop licenses to US$50 from the previous US$600, which many small businesses found unsustainable.
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This new policy allows fees instead of licenses to accommodate the numerous subdivided shops in the city.
Yet, Councillor Ngadziore could not provide the number of operating shops in Harare, which have been accused of drawing customers away from established businesses without paying taxes.
According to Ngadziore, the Ministry of Women Affairs, Community, and Small and Medium Enterprises Development recognises businesses operating within a 10 by 10-meter space as eligible under the SMEs policy.
The full implementation of this policy is projected to create an additional 150,000 trading spaces in Harare, potentially generating no less than US$7.5 million per month for the local authority, but such implementation is lacking.
Rueben Akili, director of the Combined Harare Residents Association, linked the absence of a business database to the non-functioning ERP system, suggesting that negligence allows for exploitation and corruption.
“The local authority’s failure to maintain a functional ERP system appears intentional, enabling abuse of council resources,” he stated.
Precious Shumba, director of the Harare Residents Trust, criticised the council’s management, asserting that individual managers are looting funds unchecked.
He noted that the Harare Commission of Inquiry exposed how the chaos within the council benefits corrupt cartels, undermining governance and accountability efforts.
“The city’s finances are opaque and porous,” Shumba remarked.
“Residents are enduring inadequate water supplies, uncollected refuse, and poorly maintained roads, while issues like sewer and water pipe bursts remain unaddressed.”
A special committee report on Rufaro Marketing, which manages council beer halls, indicated that both current and former council officials were subletting properties in foreign currency while paying minimal fees to the municipality.
Furthermore, reports suggest that Harare Quarry has not remitted any revenue to the city, raising suspicions of collusion between company officials and council members.
The recent Commission of Inquiry into Harare’s affairs revealed that top council officials receive substantial salaries and allowances, with some earning as much as US$30,000 per month.
Amid the turmoil, the local authority continues to operate with an unclear financial system, with the last audit conducted in 2020, intensifying concerns about governance and accountability in Harare.
