Council ropes in Mnangagwa

Amid escalating losses and allegations of deep-rooted corruption, Harare City Council has turned to President Emmerson Mnangagwa's office to intervene in the stalled acquisition of a critical Enterprise Resource Planning (ERP) system. The move aims to break the deadlock caused by ongoing disputes between the Procurement Regulatory Authority of Zimbabwe (PRAZ) and the Ministry of Local Government.

For years, the capital city has been losing billions of dollars due to systemic leakages, with sources pointing to a powerful cartel involving council employees, officials from the Ministry of Local Government, and elements within PRAZ. This alleged network is accused of deliberately delaying the ERP procurement process to enable continued looting and corruption.

ERP systems are essential software platforms that integrate core organizational functions such as finance, human resources, and supply chain management into a unified system, enhancing efficiency and accountability. However, Harare has operated without such a system for four years, exacerbating financial mismanagement and loss.

Finance Committee Chairperson, Councillor Costa Mande, told Business Times this week that the absence of an ERP system has allowed corruption to flourish unchecked.

"The implementation of the system has been delayed. We have been going back and forth for a year now. It has now been four years without an ERP system," Mande said. "We have now involved the President's Office to address this issue as it has been a year since we started this process."

Mande revealed that while PRAZ advised the council to channel communications through the Ministry of Local Government, no progress has been made. "Currently, we have a task force that includes the Office of the President, the Ministry of Local Government, and the PRAZ team, but nothing has come of it for one reason or another," he added.

The absence of an ERP system leaves glaring loopholes that cartels continue to exploit. Since 2022, Parliament has expressed serious concern over corruption at Town House, attributing much of the malpractice to the lack of proper accounting and billing systems.

Investigations by the Zimbabwe Anti-Corruption Commission (ZACC) have implicated at least eight Harare City Council officials, including the head of Information Technology, for failing to account for over US$200 million that vanished under suspicious circumstances involving a flawed billing system. The officials are now under probe for alleged criminal abuse of office amid fears of massive financial losses orchestrated by cartels within the council's ranks.

Mande expressed frustration over the ongoing procurement delays, noting that councillors have been sidelined in the process. "The Procurement Management Unit and PRAZ have been dragging their feet for too long," he said. "If you go to PRAZ, they claim the council is delaying, and if you go to the council, they point fingers at PRAZ. There is a lot of back and forth on this issue."

Responding to the claims, PRAZ spokesperson Mqhele Tshuma said the ERP matter is now between the council and the Ministry of Local Government. "Council is now engaging us through the Ministry of Local Government and we are uncertain when we last had communication about the issue. The Ministry of Local Government and Public Works has been involved in this matter," Tshuma said.

As the stalemate drags on, the involvement of the President's Office signals the gravity of the situation and the urgent need to end years of losses and institutional corruption through the implementation of a modern ERP system at Harare City Council.