Secret perks for council bigwigs

Top officials at Harare City Council have been accused of covering up excessive salaries and benefits amid allegations of gross financial irregularities and poor service delivery. The accusations were made during testimony by Groupview Technologies representatives before the Harare City Council Commission of Inquiry.

Groupview Technologies, a local partner of South African developer Quill Associates, previously supplied the city's Enterprise Resource Planning (ERP) system, which included billing services.

Ms. Princess Mahari, managing director of Groupview Technologies, painted a grim picture of financial mismanagement. She testified that senior council officials deliberately excluded their payrolls from the ERP system, enabling potential fraud and manipulation of salary payments.

"This has created fertile ground for fraud," Ms. Mahari said. "We found ourselves in constant conflict with city officials who refused to adhere to basic accounting principles."

She further revealed that financial records from key subsidiaries, including City Park, Rufaro Marketing, and Harare Quarry, were also excluded from the ERP system, compromising transparency and accountability.

Ms. Mahari disclosed that critical reports highlighting deficiencies in the ERP system were ignored by city officials before the system was discontinued. She described the exclusion of executive payrolls and poor financial practices as fostering an environment ripe for fraud.

"The lack of bank reconciliations and proper financial oversight leaves significant room for fraudulent activities," she warned.

Mr. Mike Jasi, technical operations officer at Groupview Technologies, echoed these concerns. He criticized the council's management for delaying the integration of crucial revenue systems, claiming this negligence put city finances at risk.

"Revenue generation is the lifeblood of the council's operations," said Mr. Jasi. "Yet, management has consistently delayed critical integrations, leaving finances vulnerable to fraud and unrecorded transactions."

Mr. Jasi also noted that repeated audit disclaimers had damaged the council's reputation, raising serious doubts about its financial integrity. The failure to implement the ERP system fully, he argued, had created significant loopholes for corruption and maladministration.

The testimony underscores a crisis within Harare City Council as residents continue to endure substandard services, including erratic water supply, uncollected garbage, and deteriorating infrastructure.

The Commission of Inquiry is expected to continue probing the allegations as calls grow louder for accountability and the implementation of effective financial management systems.