Harare City Council uncovers $2 million scandal

A seven-member sub-committee appointed by the Harare City Council has uncovered a scandal that has cost the municipality over US$2 million in a dubious land deal. The investigation, initiated in May 2024, focused on the circumstances surrounding the occupation of stands 154 to 166 in Amby Township, Greendale, where cluster houses have since been constructed.

The findings were disclosed in a final report presented to the council by the sub-committee chairperson, Councillor Denford Ngadziore. The committee also included councillors Prince Matebuka, Richard Pamire, Jane Bingari, and Harare City Council officials Aaron Tayerera, John Mudzengerera, and Stanley Kumbirai Chimbetete.

The investigation was prompted by a petition from residents to the Greendale district officer, which was also sent to Harare Mayor Jacob Mafume and the chairperson of works and town planning. The residents expressed concerns about residential developments on the contested land.

In an interview, Ngadziore confirmed that the council had lost more than US$2 million due to non-payment of property rates. "We conducted over three months of investigations. During this period, we received threats in the form of calls, but we did not stop our work collectively," he stated.

He added, "We have established that the land in question is private land with no rates collected for close to 45 years, and the council is owed over US$2 million for non-payment of property rates. The land is valued at US$900,000. The beneficiaries have fake offer letters, fake agreements of sale, and fake receipts of payment from the council. There are no council resolutions to support the allocation of the stands. We have since referred the matter to the Zimbabwe Anti-Corruption Commission (ZACC) for prosecution."

Harare City Council's Director of Housing and Community Services, Addmore Nhekairo, acknowledged the situation but stated that he was not permitted to speak to the press. However, he recommended that the files for the stands be forwarded to the Harare Metropolitan Police for further investigations.

The report detailed several deficiencies within the council's operational framework, noting a disjointed departmental consultation system that led to uncoordinated implementation processes. It highlighted a lack of adherence to established procedures and insufficient supervision in critical areas.

The audit manager revealed that the receipts used for land price transactions were fraudulently generated, resulting in no money being receipted into the council coffers. Furthermore, a separate investigation by the audit division implicated a cashier at the Borrowdale district office and a clearing officer stationed at the Rowan Martin Building Banking Hall, who had used receipts associated with the Greendale stands for similar fraudulent transactions.

The report also identified discrepancies in the letterheads used for offer letters, indicating that signatories were still listed as directors of corporate services despite the department reverting to its original name as the housing and community services department.

As a result of these findings, the land in question has been classified as derelict, raising serious concerns about the integrity of the land allocation process within the Harare City Council. The matter is expected to escalate as the ZACC takes over the investigation into the alleged fraudulent activities surrounding this significant loss of municipal resources.