Funds looted in shocking Harare 'ghost projects' scandal

Millions of dollars earmarked for road rehabilitation and water infrastructure in Harare have disappeared under murky circumstances, with contractors paid in full for projects that were never carried out, a damning investigation has revealed.

An internal audit conducted in 2019 showed that the City of Harare disbursed more than US$7,4 million for at least 43 road projects, yet none were implemented. Among the most glaring cases, Fossil Contracting was reportedly paid US$1,7 million for work on Kelvin South Road, which remains untouched.

The revelations came to light during a Government-appointed Commission of Inquiry, where Harare's acting finance director, Godfrey Kusangaya, admitted that the city lacks an integrated financial management system to monitor contracts. "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 told the Justice Maphios Cheda-led commission.

The scandal stretches beyond roads. In the water sector, questions have been raised over the use of a US$144 million loan secured from China Eximbank in 2013 to rehabilitate Morton Jaffray Waterworks. Key components of the project were never delivered, while Sidal Engineering - controversially awarded a major pipe replacement contract without public tender - failed to commence work despite advance payments.

Attention has also turned to politically connected firms. Juluka Enndo Joint Venture, linked to businessmen Mike Chimombe and Moses Mpofu, received a US$9,2 million street lighting tender awarded without competitive bidding. The Zimbabwe Anti-Corruption Commission later arrested Town Clerk Hosiah Chisango for his role in bypassing procurement procedures.

At Harare Quarry, another audit by Parker Randall exposed the disappearance of US$4,5 million in loans advanced by the city in 2018, with no agreements, repayment plan, or accountability. Investigators also uncovered ghost workers and inflated salaries.

Despite these massive outlays, Harare residents continue to endure potholed roads, erratic water supplies, and burst sewer pipes, deepening frustration over service delivery failures.

Local Government Minister Daniel Garwe blasted the revelations, saying the findings expose a culture of "impunity and mismanagement" at Town House. "Funds meant to improve lives are being looted with no accountability," he said, adding that the Government has ordered forensic audits of all municipal contracts awarded between 2017 and 2024.

The Commission of Inquiry has since submitted its full report to the President's Office. City of Harare spokesperson Stanley Gama ignored questions sent to him via WhatsApp, even though his messages showed they had been read.

The scandal now places fresh pressure on authorities to hold those implicated accountable and restore public trust in Zimbabwe's capital city council.