Millions of dollars allocated to the City of Harare for road rehabilitation and water infrastructure upgrades have disappeared under suspicious circumstances, with council records showing payments to contractors for projects that were never carried out, The Herald Checkpoint has reported.
An internal audit conducted in 2019 revealed that at least 43 road rehabilitation contracts were fully paid for, yet no work was done on the ground.
One of the companies implicated, Fossil Contracting, allegedly received US$1.7 million for work on Kelvin South Road — which remains untouched to this day.
According to The Herald Checkpoint, council documents show that over US$7.4 million was disbursed to contractors in that year alone, but site inspections confirmed none of the projects had been implemented. In some cases, payments were made before contractors had even mobilised to site, raising concerns of collusion between council officials and service providers.
Harare acting finance director Mr Godfrey Kusangaya admitted to the problem while appearing before the Justice Maphios Cheda-led Commission of Inquiry into council operations.
“We do not have a consolidated balance sheet that includes entities such as Harare Quarry, Rufaro Marketing, or City Parking. We rely on manual records which are often incomplete or delayed,” he said.
The investigation also uncovered irregularities in the procurement of materials for water infrastructure.
In 2013, the City of Harare secured a US$144 million loan from China Eximbank for the rehabilitation of the Morton Jaffray Waterworks, but key components of the project were never delivered.
Sidal Engineering was controversially awarded a major pipe replacement contract without public tender and reportedly failed to start work despite receiving substantial advance payments.
The Herald Checkpoint report also highlighted the awarding of a US$9.2 million street lighting tender to Juluka Enndo Joint Venture, linked to businessmen Mike Chimombe and Moses Mpofu. Investigations by the Zimbabwe Anti-Corruption Commission resulted in the arrest of town clerk Hosiah Chisango for allegedly bypassing procurement rules.
An audit into Harare Quarry, a council-owned entity, revealed the disappearance of US$4.5 million in loans advanced by the city in 2018. Auditor Parker Randall found no loan agreements, repayment plans, or supporting documentation — but did find ghost employees and inflated salaries.
Despite these revelations, residents continue to endure poor service delivery, with pothole-ridden roads, frequent water cuts, and burst sewer pipes.
The Government has since ordered forensic audits into all municipal contracts awarded between 2017 and 2024.
Local Government and Public Works Minister Daniel Garwe described the findings as unacceptable.
“The level of financial mismanagement uncovered at the City of Harare is unacceptable. Funds meant to improve lives are being looted with no accountability,” he said.
The Commission of Inquiry has since submitted its full report to the President’s Office. City of Harare spokesperson Mr Stanley Gama did not respond to questions sent via WhatsApp, although the messages were marked as read.
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