Council in US$2,1m billing system storm

The Harare City Council recently bypassed a locally-developed enterprise resource planning (ERP) system, opting instead to pay US$2.1 million to a foreign vendor, prompting public criticism. The rejected system, developed by the Harare Institute of Technology (HIT) and priced at US$350,000, has been successfully deployed across 20 municipalities, including award-winning Mutare Municipality.

As the city council continues to rely on outdated manual systems, residents face issues such as double billing, lost housing records, and questionable billing accuracy. HIT's ERP, named Local Authorities Digital Systems (LADS), offers comprehensive functionality, automating key areas like billing, asset management, and debt tracking, while integrating with national public financial systems. Notably, LADS has helped local authorities streamline revenue collection and improve service delivery, particularly in councils like Mutare and Masvingo.

Harare Residents Trust director Precious Shumba criticized the council's ERP decision, alleging that certain officials prefer the vulnerable manual system, which is open to abuse. "It's disheartening that the city has been without a functional billing system for five years. Residents and businesses are being billed based on estimates, inflating debts when services provided are minimal," Shumba stated, adding that "cartels" within the council might be influencing financial decisions.

Combined Harare Residents Association director Rueben Akili echoed these concerns, suggesting that cashiers exploit the absence of an automated system to speculate on the foreign exchange market. "Cashiers may convert US dollars paid by residents into local currency due to the absence of proper electronic records, keeping financial data on portable memory devices," Akili said.

Harare Mayor Jacob Mafume responded by denying that the local ERP was dismissed, explaining that HIT's system had not tendered under Zimbabwe's procurement laws. However, LADS Africa's head, Engineer Tererai Maposa, noted that research institutions like HIT are legally exempt from tender requirements for unique products. "We're working with other cities without tendering," Maposa said, lamenting the slow adoption of digital systems.

Local laws, including the Public Procurement and Disposal of Public Assets Act and Statutory Instrument 134 of 2017, support this exemption, highlighting HIT's eligibility to provide specialized solutions. LADS Africa has faced hurdles, Maposa added, as local institutions struggle to embrace digital solutions at the pace necessary to support national digitalization goals.

As Harare prepares to launch its new, costly ERP, residents continue to bear the impact of the city's unresolved billing issues, hoping the shift to digital systems will bring long-overdue financial transparency and improved service delivery.