News / National
Harare council faces scandal over $500m lost on delays
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Harare City Council has allegedly lost close to US$500 million since 2019 due to the delayed implementation of a modern Enterprise Resource Planning (ERP) system, amid explosive allegations of corruption, mismanagement, and financial cover-ups by city executives.
Investigations and testimony before the Commission of Inquiry into Harare Governance Affairs revealed that the city has been losing about US$200,000 every day due to revenue leakages caused by operating without a modern ERP system. Suspended Town Clerk, Engineer Hosiah Chisango, told the Commission that Harare could be losing more than US$70 million annually due to its outdated manual accounting system.
The city's last ERP system was withdrawn in 2019 by its supplier, Quill Associates, following a contractual fallout. Since then, the city has run its accounts manually - despite repeated warnings that even an eight-hour outage of such systems could be catastrophic.
Now, with US$200 million reportedly unaccounted for since 2020, pressure is mounting to reactivate the ERP system. However, council insiders claim senior executives are deliberately stalling the process to continue siphoning funds before the Commission concludes its work, which could result in arrests.
Councillors have expressed outrage over the executive's ability to swiftly procure 13 luxury vehicles - including 12 Toyota Fortuner GD6s and one Prado VX200 for the Town Clerk - at a cost of over US$500,000, while citing red tape for failing to acquire a financial management system critical to the city's operations.
"Where on earth have you seen direct procurement take nine months?" an insider asked. "They want to continue looting. Once the Commission's report is out, they know it's game over."
Councillor Denford Ngadziore was blunt: "There's a cartel at Town House. If we don't break this system, we will go nowhere."
The Procurement Regulatory Authority of Zimbabwe (PRAZ) said Harare City Council was granted approval for direct procurement back in October 2024, following recommendations from both Parliament and Auditor-General Mildred Chiri. The goal was to hire Quill Associates to reactivate the outdated BIQ ERP system to account for the missing funds and stem ongoing losses.
Yet the city only submitted its first procurement request in June 2025, a full eight months later.
PRAZ raised further concerns over a dramatic price hike. Quill was now quoting US$1.7 million - double the US$862,730 quoted in 2022. The matter was deferred pending clarification on scope and justification of the increase.
However, Quill managing director Princess Mahari explained the jump in price was due to an expanded scope, which now included full implementation of all BIQ modules, not just a bridging solution. She said this was agreed upon by all stakeholders, including officials from the Ministry of Local Government, ICT, and the Office of the President and Cabinet in May 2025.
Harare Mayor Jacob Mafume laid the blame squarely on the city's procurement department:
"Our situation is like asking a thief to build their own jail. They'll build one without a door."
Mafume accused procurement officials of deliberately withholding information from PRAZ. He insisted the price increase was due to added system features and that a simple explanation should have sufficed.
However, acting Town Clerk Engineer Phakamile Mabhena-Moyo denied any wrongdoing, saying the delay stemmed from "lengthy price negotiations" involving multiple government departments. He claimed due diligence was underway and a decision would be submitted to PRAZ "next week."
Meanwhile, frustration within council chambers is mounting. With potholes multiplying and basic services crumbling, the city's leadership faces increasing scrutiny for prioritising personal comforts over public needs.
"Executives bought themselves top-of-the-range vehicles without any procurement issues," said one councillor. "But when it comes to financial systems or even buying tar, there's always an excuse."
As Harare awaits the Commission's final report, insiders warn that a hasty ERP implementation may be used to create the illusion of progress, while conveniently skipping the audit trail for the missing US$200 million.
Until then, the city's finances remain murky, its systems broken, and its trust in leadership severely eroded.
Investigations and testimony before the Commission of Inquiry into Harare Governance Affairs revealed that the city has been losing about US$200,000 every day due to revenue leakages caused by operating without a modern ERP system. Suspended Town Clerk, Engineer Hosiah Chisango, told the Commission that Harare could be losing more than US$70 million annually due to its outdated manual accounting system.
The city's last ERP system was withdrawn in 2019 by its supplier, Quill Associates, following a contractual fallout. Since then, the city has run its accounts manually - despite repeated warnings that even an eight-hour outage of such systems could be catastrophic.
Now, with US$200 million reportedly unaccounted for since 2020, pressure is mounting to reactivate the ERP system. However, council insiders claim senior executives are deliberately stalling the process to continue siphoning funds before the Commission concludes its work, which could result in arrests.
Councillors have expressed outrage over the executive's ability to swiftly procure 13 luxury vehicles - including 12 Toyota Fortuner GD6s and one Prado VX200 for the Town Clerk - at a cost of over US$500,000, while citing red tape for failing to acquire a financial management system critical to the city's operations.
"Where on earth have you seen direct procurement take nine months?" an insider asked. "They want to continue looting. Once the Commission's report is out, they know it's game over."
Councillor Denford Ngadziore was blunt: "There's a cartel at Town House. If we don't break this system, we will go nowhere."
The Procurement Regulatory Authority of Zimbabwe (PRAZ) said Harare City Council was granted approval for direct procurement back in October 2024, following recommendations from both Parliament and Auditor-General Mildred Chiri. The goal was to hire Quill Associates to reactivate the outdated BIQ ERP system to account for the missing funds and stem ongoing losses.
Yet the city only submitted its first procurement request in June 2025, a full eight months later.
PRAZ raised further concerns over a dramatic price hike. Quill was now quoting US$1.7 million - double the US$862,730 quoted in 2022. The matter was deferred pending clarification on scope and justification of the increase.
However, Quill managing director Princess Mahari explained the jump in price was due to an expanded scope, which now included full implementation of all BIQ modules, not just a bridging solution. She said this was agreed upon by all stakeholders, including officials from the Ministry of Local Government, ICT, and the Office of the President and Cabinet in May 2025.
Harare Mayor Jacob Mafume laid the blame squarely on the city's procurement department:
"Our situation is like asking a thief to build their own jail. They'll build one without a door."
Mafume accused procurement officials of deliberately withholding information from PRAZ. He insisted the price increase was due to added system features and that a simple explanation should have sufficed.
However, acting Town Clerk Engineer Phakamile Mabhena-Moyo denied any wrongdoing, saying the delay stemmed from "lengthy price negotiations" involving multiple government departments. He claimed due diligence was underway and a decision would be submitted to PRAZ "next week."
Meanwhile, frustration within council chambers is mounting. With potholes multiplying and basic services crumbling, the city's leadership faces increasing scrutiny for prioritising personal comforts over public needs.
"Executives bought themselves top-of-the-range vehicles without any procurement issues," said one councillor. "But when it comes to financial systems or even buying tar, there's always an excuse."
As Harare awaits the Commission's final report, insiders warn that a hasty ERP implementation may be used to create the illusion of progress, while conveniently skipping the audit trail for the missing US$200 million.
Until then, the city's finances remain murky, its systems broken, and its trust in leadership severely eroded.
Source - the herald
