Harare loan plan sparks outcry over missing millions

The City of Harare is facing renewed backlash from residents after announcing plans to borrow nearly US$17 million for infrastructure and service delivery projects, amid unresolved concerns over a previously unaccounted US$4.5 million loan linked to Harare Quarry.

The local authority recently published a notice under Section 290 (3) of the Urban Councils Act seeking borrowing powers of up to US$16 763 000.

The proposed funds are earmarked for several projects, including the Mbare Urban Renewal programme, sewer rehabilitation, borehole installations, vehicle procurement and a traffic management system.

However, the proposal has been met with strong resistance from residents and civic groups who say the council has not accounted for past funds.

The controversy centres on Harare Quarry, a council subsidiary that reportedly received US$4.5 million in 2017 for recapitalisation but has not accounted for the money nearly eight years later. A forensic audit by Parker Randall Chartered Accountants later revealed serious governance failures, including missing revenue records, undocumented payments and alleged "ghost worker" payments.

Budiriro resident Tinashe Mbizvo questioned the council's credibility, saying the unresolved scandal undermines trust in new borrowing plans.

"How can they convince us this US$17 million will be used transparently when no arrests have been made over the missing US$4.5 million?" he said.

Harare Residents Trust chairperson Precious Shumba accused the council of entrenched corruption and called for greater accountability, including the release of findings from a commission of inquiry led by retired judge Justice Maphios Cheda.

The Combined Harare Residents Association (CHRA), led by Ruben Akili, also criticised the borrowing proposal, arguing that the council should first plug existing revenue leakages before seeking new loans.

Akili said alternative revenue sources, including City Parking and traffic fines, could be used to fund some of the proposed projects instead of increasing public debt.

"Council claimed it collected over US$1.2 million from traffic fines. That is exactly the kind of revenue that should be used for these projects," he said.

The City of Harare has in recent years struggled with service delivery challenges, including water shortages, poor road maintenance and deteriorating infrastructure, while facing repeated allegations of financial mismanagement.

The latest borrowing proposal is expected to be debated further amid growing pressure for transparency and reform within the local authority.